Mumbai: The rupee depreciated 10paise to close at 89.98 (provisional) against the US dollar on Thursday, the first trading session of 2026, as sustained foreign fund outflows and a negative trend in domestic equities dented investor sentiments.

Forex traders said the USD/INR pair traded in a tight range, as support from easing crude oil prices was offset by a positive tone in the US dollar index and foreign fund outflows.

The Indian rupee declined on the first day of the year, after registering a 5 per cent slump in 2025, as significant fund outflows kept dollar demand elevated and the rupee under pressure.

At the interbank foreign exchange, the local unit opened at 89.94 against the dollar, touched an intra-day low of 89.99, and a high of 89.93.At the end of Thursday's trading session, the rupee was quoted at 89.98 (provisional) against the greenback, down 10 paise from its previous close.On Wednesday, the rupee depreciated by 13 paise to close at 89.88 against the US dollar.