The Indian Rupee fell to an all-time low against the US dollar on Thursday, breaching the Rs 85 mark for the first time.
This decline comes after the US Federal Reserve cut key interest rates by 25 bps and signalled fewer rate cuts in 2025.
Notably, the rupee dropped to 85.0650 against the US dollar in early trade, compared to 84.9525 on Wednesday.
The pace of the rupee’s depreciation has accelerated recently, with the fall from Rs 84 to Rs 85 taking just two months.
In contrast, the slide from Rs 83 to Rs 84 took 14 months, and it took 10 months for the rupee to weaken from Rs 82 to Rs 83.
Also, the Rupee’s Asian peers — South Korean Won, Malaysian Ringgit, and Indonesian Rupiah — were down 0.8 per cent-1.2 per cent on the day.
The Fed’s hawkish turn comes at a time when the rupee has been facing several pressures. India’s economic growth slowed to a seven-quarter low in July-September, the merchandise trade deficit is widening, and capital inflows are tepid.