New Delhi, 10.01.2025: The Indian rupee dropped to an all-time low of 85.97 against the US dollar on Friday, breaking its previous low of 85.9325 set just a day earlier. It closed at 85.9650, marking its tenth straight weekly loss, falling 0.2% this week.
The rupee has been under pressure due to a strong dollar, with the dollar index staying above 109. Expectations that the US Federal Reserve will delay rate cuts and strong U.S. job data have strengthened the dollar further. Traders believe the rupee may soon cross the 86 mark.
The Reserve Bank of India (RBI) tried to limit the rupee’s fall by selling dollars through state-run banks. However, foreign investors have pulled over $3 billion from Indian markets this month, adding to the pressure on the rupee. Concerns over U.S. policies, which have increased the appeal of dollar assets, also hurt the rupee.
The rupee has become more unstable in recent weeks, coinciding with changes in RBI leadership. Analysts remain cautious about its future as global and domestic challenges grow. Upcoming U.S. jobs data may impact market trends further.
