Rupee Under Pressure as Venezuela Shock Fuels Dollar Rush
- Rupee falls to 90.24 against U.S. dollar in early trade
- Venezuela crisis boosts dollar demand, weighs on rupee
- Rising forex reserves offer some cushion to the currency
The Indian rupee opened on a weak note and slipped 4 paise to 90.24 against the U.S. dollar in early trade on Monday, January 5, 2026, as rising geopolitical tensions boosted demand for the American currency.
Forex traders said the rupee is likely to remain under pressure due to uncertainty triggered by recent global developments, particularly the U.S. military intervention in Venezuela. However, softer crude oil prices may offer some support to the domestic currency at lower levels.
At the interbank foreign exchange market, the rupee opened at 90.21 against the dollar and weakened further to 90.24 in early deals. On the previous trading session, Friday, January 2, 2026, the rupee had settled 22 paise lower at 90.20 against the greenback.
The dollar index, which measures the strength of the U.S. dollar against a basket of six major currencies, was trading 0.36 per cent higher at 98.50, reflecting strong demand for the dollar amid global uncertainty.
Geopolitical tensions intensified after the U.S. carried out a military operation in Venezuela on Saturday, January 3, 2026, and deposed President Nicolas Maduro. U.S. President Donald Trump stated that the U.S. would take control of the country and use its oil reserves for global supply, a move that has added to market volatility.
Meanwhile, Brent crude oil, the global benchmark, was trading marginally lower by 0.07 per cent at $60.70 per barrel in futures trade.
On the domestic equity front, markets traded lower in early trade. The Sensex fell 135.81 points to 85,626.20, while the Nifty declined 25.75 points to 26,302.80.
Foreign institutional investors were net buyers on Friday, investing Rs 289.80 crore in equities, according to exchange data. Supporting the rupee outlook, RBI data showed India’s forex reserves rose by $3.293 billion to $696.61 billion in the week ended December 26.
