Indian rupee weakened by 5 paise to end at fresh record closing low of 84.95 against the US dollar ahead of the final policy decision by Federal Reserve. The local currency weakened to 84.96 during the day. It had closed at 84.90 on Tuesday.
"Rupee makes an all time low of 84.95 as dollar buying, ahead of FOMC wherein Fed will cut rates by 25 bps and will give future guidance tonight, continues," according to Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.
Rupee could touch 85 tomorrow if Fed is slightly hawkish in its tone, he said.
Dollar Index stood at 106.9850, which measures the greenback against a basket of popular currencies, was 0.03% up.
"The dollar is expected to continue its outperformance in the first half of 2025 due to its strong economy and lower rate cuts initially. The dollar may weaken in the second half, based on the fact that market has already priced in most of the economic policy announcements, while the growth implications are not yet factored in," according to Bhansali.
Brent crude was at $73.63 and was up 0.44%.
"As traders await for more cues from Fed on interest rate front, Brent oil prices moved little as renewed concerns of demand from China, as well as fears from a supply glut next year," according to Bhansali.
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