Rupee crashes 19 paise to settle at all-time low of 85.13 against US dollar
Mumbai, Dec 19: The rupee depreciated 19 paise and breached the crucial 85 level to close at a fresh all-time low of 85.13 against the US dollar on Thursday, as a hawkish stance from the US Federal Reserve sparked a broad dollar rally.
Forex traders said the Indian rupee breached the 85-mark for the first time and fell to a new record low as the US Federal Reserve adjusted its projections for 2025, signalling a more cautious monetary policy stance, pressuring emerging market currencies, including the Indian rupee.
The US Federal Reserve cut interest rates by 25 basis points to 4.5 per cent, in line with estimates. However, it signalled only two rate cuts in 2025 from previous expectations of four rate cuts.
At the interbank foreign exchange, the rupee opened on a weak note and touched the lowest-ever level of 85.14 against the greenback during intra-day.
It finally ended the session at the lowest-ever closing level of 85.13 against the American currency, registering a steep decline of 19 paise over its previous close, as dollar demand from importers, foreign fund outflows and a muted trend in domestic equities further dented investor sentiments.
On Wednesday, the rupee dropped 3 paise to close at a record low of 84.94 against the US dollar.
"We expect the rupee to trade with a negative bias on global equities following a hawkish Fed and a strong dollar. Concerns over slowdown in the economy may further weigh on the rupee," said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.
Choudhary further noted that any intervention by the Reserve Bank of India (RBI) may also support the rupee.
"Traders may take cues from final GDP, weekly unemployment claims, and existing home sales data from the US. USD-INR spot price is expected to trade in a range of 84.9 to 85.25," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.13 per cent at 107.88.
Brent crude, the global oil benchmark, fell 0.05 per cent to USD 73.35 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex closed 964.15 points, or 1.20 per cent, down at 79,218.05 points, while Nifty settled down 247.15 points, or 1.02 per cent to 23,951.70 points.
Foreign Institutional Investors (FIIs) offloaded Rs 4,224.92 crore in the capital markets on net basis on Thursday, according to exchange data.
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Karnataka: GBA city corporation polls likely between June 14 and 24
Bengaluru (PTI): Karnataka State Election Commissioner G S Sangreshi on Friday said elections to the five city corporations under the GBA will be held anytime between June 14 and June 24.
He said the exact date for the polls will be announced after a week, asserting that the power to postpone the elections, as requested by GBA authorities, lies with the Supreme Court.
The Supreme Court had directed the Karnataka government and the State Election Commission to conduct Bengaluru local body elections by June 30.
On Friday, the SEC held a consultation meeting with the GBA Chief Commissioner and commissioners of the five city corporations regarding the election schedule, as per the provisions of the GBA Act.
“During the meeting, I informed GBA officials that only the election date has to be fixed, as all other measures and formalities for conducting the polls have already been completed,” Sangreshi said.
“They requested the Commission to consider factors such as rains, exams, census work, SIR, and manpower shortages while fixing the date and sought additional time,” he added.
Speaking to reporters after the meeting, he said, “I told them this meeting was not for seeking time. Elections to the five corporations under the GBA must be held before June 30, as directed by the Supreme Court, and a compliance report must be submitted to the court. I do not have the power to postpone the elections as requested.”
The Supreme Court has already given a “final opportunity,” and both the SEC and the government must comply with its directions, the State Election Commissioner said.
He asked GBA officials to suggest suitable dates between June 14 and June 24.
“While stating that they are ready for elections, the officials highlighted operational challenges, including manpower shortages. However, I have informed them that the elections will have to be held between June 14 and June 24. After a week, I will announce the final date,” he said.
Reiterating that he does not have the power to postpone the elections, Sangreshi said the authority rests with the Supreme Court, and elections must be conducted as scheduled.
“We have consulted the GBA as per the rules. It is up to them to suggest a date within the given window. If they need more time, they must approach the court. Our responsibility is to fix the date and complete the polls before June 30,” he said.
The matter regarding manpower and other concerns raised by GBA officials is already before the Supreme Court, and the State Election Commission has also filed a petition in this regard. The case is yet to be heard.
“Since the matter has not come up for hearing, the earlier order remains binding. Therefore, preparations are underway,” he added.
The tenure of the previous elected body under the erstwhile Bruhat Bengaluru Mahanagara Palike (BBMP) ended on September 10, 2020, and since then, a government-appointed administrator has been managing its day-to-day affairs.
Bengaluru was divided into five municipal corporations—Central, East, West, North, and South—under the Greater Bengaluru Authority in September 2025, replacing the BBMP.
Sangreshi had earlier said that elections to the five corporations would be conducted using ballot papers instead of Electronic Voting Machines.
This follows the Congress government’s decision last September to recommend the use of ballot papers in all future panchayat and urban local body elections, citing concerns over declining public confidence in EVMs.
The state government subsequently enacted the Karnataka Gram Swaraj and Panchayat Raj (Amendment) Act, 2026, paving the way for the use of ballot papers in local body elections.
