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Rupee Tumbles: Dollar Demand, Geopolitics Hurt INR
11 Feb
Summary
- Indian rupee declined 14 paise to close at 90.70 against the US dollar.
- Dollar demand from importers and geopolitical tensions impacted the rupee.
- Local shares ended muted, with Sensex slipping and Nifty seeing minor gains.
As of February 11, 2026, the Indian rupee experienced a depreciation of 14 paise, closing the trading session at 90.70 against the US dollar. This decline was primarily driven by increased dollar demand from importers and prevailing geopolitical tensions.
Local equity markets mirrored this cautious sentiment, closing on a muted note. The benchmark BSE Sensex registered a slight decrease of 40.28 points, settling at 84,233.64. Conversely, the broader NSE Nifty index saw a marginal uptick of 18.70 points, ending the day at 25,953.85.
The market's performance was influenced by mixed signals from global markets and profit-taking following recent gains. Heightened oil prices also contributed to investor apprehension, particularly ahead of anticipated diplomatic discussions concerning Iran's uranium enrichment program.
Despite the rupee's downward movement, analysts suggest that potential inflows from Foreign Portfolio Investors (FPIs) could provide support to the Indian currency at lower levels. During the trading day, the rupee fluctuated, opening at 90.56, reaching an intra-day low of 90.75, and a high of 90.46 against the US dollar.
