The Indian rupee experienced a mixed trading session against the US dollar on Monday, December 23, 2025. The currency initially opened stronger but ultimately surrendered its gains by the end of the day.
Initial Gains Wiped Out by Market Forces
In early morning trade, the rupee appreciated by 3 paise to reach 89.65 against the American dollar. This early strength was primarily supported by positive momentum in the domestic equity markets, which provided a bullish cue for the local currency.
However, this upward movement proved to be short-lived. As the trading session progressed, the rupee began to lose ground. By the time the markets closed for the day, the currency had moved into negative territory. It settled at 89.70 against the US dollar, according to provisional data, marking a decline of 3 paise from its previous close.
Key Factors Influencing the Rupee's Movement
The reversal in the rupee's fortune was driven by two major counteracting forces. On one hand, positive domestic equities continued to offer support, preventing a steeper fall. On the other hand, a significant recovery in global crude oil prices exerted substantial downward pressure on the Indian currency.
India, being a major importer of crude oil, faces a higher import bill when oil prices rise. This typically leads to increased demand for US dollars to pay for these imports, thereby weakening the rupee. The rebound in oil prices on Monday effectively negated the positive impact from the stock markets, leading to the rupee's closing loss.
Market Outlook and Closing Position
The day's trading highlighted the rupee's ongoing sensitivity to global commodity prices, particularly crude oil, even in the face of supportive local factors. The final provisional closing figure of 89.70 against the US dollar encapsulates the tug-of-war between these opposing influences. Market participants will continue to monitor these dynamics, including equity market trends and oil price movements, for further cues on the rupee's direction in the coming sessions.
