The Indian rupee closed 13 paise lower on Thursday to log a new closing low of 85.08 against the US dollar. The local currency had touched a record low of 85.09 a dollar during the day after it opened at a record low, breaching the 85-mark for the first time.
Dollar index, which compares the US dollar with a basket of popular currencies, stood at 107.9090 and was 0.11% down.
On Dec. 18, the dollar index rose to 108.27, the highest level in over two years, as Fed officials reduced their rate cut projection for 2025 to 50 basis points compared to 100 basis points earlier. The central bank also raised inflation projection to 2.5%, compared to 2.1% earlier.
However, the RBI likely has intervened with dollar sales in the market to restrict sharp depreciation of the rupee, according to market participants.
Meanwhile Brent crude was trading at $73.36 and was down 0.03%.
"The slower easing approach indicated by the Fed raised concerns about potential impacts on fuel demand. Meanwhile, Gold posted a 2% loss post the Fed decision, but has since recovered above $2,610 per ounce," according to Ritesh Bhanshali, director, Mecklai Financial Service Ltd.
The rupee took 46 sessions to depreciate from 84 a dollar to 85. The last time it took least number of days to depreciate one rupee was in October 2022. It took nine sessions to touch 82 a dollar level on Oct. 7. In the last two and a half months, the rupee depreciated 1.19%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
