The government projected the country’s GDP to grow by 7.4% in the current fiscal year, maintaining its status as the world’s fastest-growing major economy despite punitive U.S. tariffs and geopolitical tensions. File
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The rupee fell 7 paise to settle at 89.94 (provisional) against the U.S. dollar on Thursday (January 8, 2026) weighed down by a host of factors, including higher crude oil prices, foreign fund outflows and a stronger U.S. dollar.
The apprehension of any further tariffs by the U.S. and weak sentiments at the domestic equity markets further pressured the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 89.96 and traded in the range of 89.73 to 90.13. It eventually settled at 89.94 (provisional), down 7 paise from its previous close.
“India faces big trouble on its exports if the U.S. increases tariffs by even 10 bps [basis points], as sentimentally it changes from ‘the deal in pipeline’ to ‘back to square one’. RBI shorts in the markets will keep the dollar buying sentiment,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The rupee is expected in the range of 89.80 to 90.30 on Friday (January 9), he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% higher at 98.70.
Read | Is India’s 8.2% growth rate sustainable?
Brent crude, the global oil benchmark, was trading 0.85% higher at $60.47 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex tanked 780.18 points to settle at 84,180.9, while the Nifty fell 263.90 points to 25,876.85.
Foreign institutional investors (FIIs) offloaded equities worth ₹1,527.71 crore on Wednesday (January 7), according to exchange data.
The government, in its latest estimate on Wednesday (January 7), projected the country’s GDP to grow by 7.4% in the current fiscal year, maintaining its status as the world’s fastest-growing major economy despite punitive U.S. tariffs and geopolitical tensions.
The First Advance Estimates released by the Ministry of Statistics and Programme Implementation put GDP growth in 2025-26 at better than 7.3%, forecast by the RBI and the government’s initial projection of 6.3-6.8%.
Published – January 08, 2026 05:20 pm IST
