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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K'taka govt contemplating to extend Metro Rail up to Hoskote, Nelamangala and Bidadi: DK Shivakumar
Belagavi (Karnataka), Dec 19: The Karnataka government is contemplating to extend the Bengaluru Metro Rail up to Hoskote in the east, Nelamangala town in the west and Bidadi in the south west of the city, Deputy Chief Minister D K Shivakumar said Wednesday.
He was replying to a question raised by Sharath Bache Gowda in the Karnataka Assembly on severe traffic congestion on the Old Madras Road from KR Puram to Hoskote.
"I am aware of the traffic woes. I am planning for it and getting a detailed survey done," the Dy CM said.
Shivakumar said, "We are seeking a report on extending Metro Rail up to Hoskote, Nelamangala and Bidadi."
He also told the Assembly that everyday 10,000 people travel by train from Kolar to work in Bengaluru.
