Mumbai, India — The Indian rupee opened 2026 on a softer note, weakening against the US dollar as strong corporate demand for dollars exerted pressure on the currency.

Market participants pointed to renewed foreign exchange buying by businesses as companies sought dollars to meet import obligations and overseas commitments at the start of the year. This uptick in corporate dollar demand contributed to downward pressure on the rupee in early trading sessions.

Analysts noted that while the rupee’s movement is influenced by various domestic and global factors, dollar purchases by importers and firms repatriating profits have been a key driver of the recent weakness. A stronger US dollar against a basket of major currencies also weighed on emerging market currencies, including the rupee.

Despite the early-year decline, currency observers say that the rupee’s outlook through 2026 will depend on global interest rate trends, crude oil prices, foreign inflows into Indian financial markets, and the overall economic performance domestically.

Traders and analysts will be watching key economic data and central bank actions closely in the coming weeks for signs of stability or further volatility in the currency markets.