Rupee Weakens Amid Thin Holiday Trading as Asian Markets Stumble
India's rupee opened 2026 at 89.9525 per dollar, extending its 4.72% annual decline from 2025—the currency's worst performance since 2022's near-10% collapse. Corporate dollar demand dominated thin holiday trading, with Reuters noting subdued activity across global desks.
Pressure persists from structural flows, though traders eye a potential equity-driven rebound. The NIFTY 50's 0.06% gain contrasted with broader Asia-Pacific declines: Hong Kong's Hang Seng dropped 0.87%, Japan's Nikkei 225 fell 0.37%, and Australia's S&P/ASX 200 edged down 0.03%.
Globally, the MSCI All Country World Index rallied 21% in 2025, peaking at 1,024.29 on December 26. U.S. markets closed softer, with the S&P 500 dipping 0.14% to 6,896.24—marking a third consecutive loss.
