The Indian rupee ended modestly weaker on Tuesday, January 13, 2026, closing at 90.19 per dollar, a slight dip from its previous session's close of 90.1625. This depreciation was primarily driven by a decline in local equity markets and a broader weakening across regional Asian currencies. India's benchmark equity indexes, the BSE Sensex and Nifty 50, fell by 0.2% and 0.3% respectively, performing worse than many of their regional counterparts. Simultaneously, other Asian currencies experienced declines ranging from 0.1% to 0.8%, indicating a widespread pressure on regional foreign exchange markets. A significant factor contributing to the rupee's woes was the deferral of Indian bonds' inclusion in a key global index, which dampened market sentiment. However, the Reserve Bank of India (RBI) reportedly intervened by selling dollars in both the non-deliverable forward and local spot markets, which played a crucial role in preventing a sharper depreciation of the rupee. Analysts from HSBC suggest a tactical preference for the Indian Rupee in the first quarter of 2026, forecasting a potential strengthening to 88 per dollar by the end of March 2026, citing a seasonal narrowing of the trade deficit and anticipated progress in US-India trade talks. Geopolitical tensions and upcoming U.S. inflation data also contribute to the prevailing market uncertainty.