The Indian rupee plunged 31 paise to settle at 90.99 (provisional) against the US dollar on Friday, tracking a strong American currency against major currencies and higher crude oil prices amid intensifying US-Iran tensions. Positive momentum in domestic equity markets failed to support the Indian unit. Indian shares bounced back on Friday after falling sharply in the previous session on rising geopolitical tensions and uncertainty over the Federal Reserve`s rate path. The benchmark BSE Sensex jumped 316.57 points, or 0.38 percent, to 82,814.71. The broader NSE Nifty index surged 116.90 points, or 0.46 percent, to 25,571.25, with metal and banking stocks leading the surge. Powered by Capital Market - Live News

Rupee closed lower at 90.9575 per Dollar on Friday (20 February 2026), versus its previous close of 90.7100 per Dollar.Powered by Capital Market - Live News

The yen weakened past 155.21 per dollar, extending weekly losses beyond 1.5% after inflation data in Japan showed a broad slowdown in price pressures. Headline inflation eased to 1.5% in January from 2.1%, the lowest level since March 2022, while core inflation slowed to 2.0%, in line with the target of the Bank of Japan. The softer inflation backdrop gives the central bank more room to delay interest rate hikes, especially amid a weak economic recovery in the previous quarter. At the same time, the dollar strengthened on solid US economic data and hawkish signals from the Federal Reserve, with markets awaiting upcoming US GDP and PCE inflation data for further direction.Powered by Capital Market - Live News

The dollar index hovered around a one-month high as minutes from the Fed�s latest meeting showed policymakers divided on the rate outlook, suggesting the next chair may face hurdles in delivering cuts. Data released by the US Department of Labor (DOL) on Thursday showed that the Initial Jobless Claims declined to 206,000 for the week ending February 14. This figure came in below the market consensus of 225,000 and down from the previous week�s revised 229,000. Meanwhile, developments surrounding a potential US-Iran conflict will be closely watched. Alongside, investors will also brace for the preliminary reading of US Gross Domestic Product (GDP) for the fourth quarter (Q4), the Personal Consumption Expenditures (PCE) and the S&P Global Purchasing Managers Index (PMI) data, which are due later on Friday. The dollar index that measures the greenback against a basket of currencies is quoting at 97.93, set for a weekly gain of over 1% and is seen fast approaching the next critical 98 mark. Powered by Capital Market - Live News

Julie Kozack, Director of the Communications Department, IMF has stated that the US dollar remains central to the international monetary system. It continues to dominate trade invoicing, international reserves, international borrowing, and global payments. And in all of these areas, the share of the dollar is larger than the US share in global GDP. She noted that role of the dollar has been broadly stable over time, with only a moderate decline in the share of the dollar in international reserves since the mid-2010s. According to the COFER data, the dollar has been holding onto a stable share of around 58 to 59 percent since 2020. The dollar has depreciated from its peak in 2024. But the current level, when we look in a more historical context, the current level of the dollar against major currencies is close to its historical average over the past decade. She also mentioned that currency markets can be volatile, and it�s important not to read too much into day-to-day movements in currencies. Powered by Capital Market - Live News