Rupee Closes Weaker Against Dollar On New Year's Day
The domestic currency closed at 85.65 against the greenback.
The Indian rupee weakened by four paise against the US dollar on the first trading session of 2025 on Wednesday, reflecting ongoing volatility in the currency market.
The domestic currency closed at 85.65 against the greenback. Earlier in the day, it opened 2 paise weaker at 85.62, according to Bloomberg data
The rupee's decline follows a period of fluctuation as it continues to navigate global dollar strength and local demand pressures. This decline follows a weaker close on the last trading day of 2024, when the rupee fell by 7 paise to close at 85.61.
The rupee's weakness can be attributed to persistent dollar demand and market fluctuations. Exporters may hold back from selling the rupee, setting a stop loss at 85.25, according to Anil Bhansali, executive director at Finrex Treasury Advisors LLP.
Despite the rupee's downward movement, the Reserve Bank of India intervened to protect the currency, supporting it at 85.6450 in the previous session. Importers should take advantage of any dips to buy dollars, Bhansali said.
In broader economic terms, Bhansali said domestic economic indicators would continue to influence the rupee's outlook, with the currency remaining sensitive to both domestic and global factors.
