Rupee falls 12 paise to all-time closing low of 85.64 against US dollar
Mumbai, Dec 31: The rupee depreciated 12 paise to close at a fresh record low of 85.64 against the US dollar on Tuesday, ending the year with a sharp 3 per cent loss on significant foreign fund outflows and a strong greenback in global markets.
Forex traders said the rupee has been under continued pressure amid the Federal Reserve's cautious stance on rate cuts and the "Trump factor" driving up the dollar index (DXY) and US 10-year bond yields.
Additionally, slowing domestic macroeconomic growth, widening trade deficit and persistent foreign fund outflows have further fuelled the rupee's depreciation.
At the interbank foreign exchange, the rupee opened at 85.54 and touched the lowest level of 85.66 against the greenback during intra-day trade.
The unit ended the session at 85.64 against the dollar, registering a fall of 12 paise over its previous close.
On Monday, the rupee dropped 4 paise to 85.52 against the US dollar.
The domestic unit has depreciated against the greenback by almost 3 per cent from 83.16 on December 29, 2023, to 85.65 on December 31, 2024.
The local currency breached the crucial 84-level on October 10, surpassed the 85-a-dollar mark on December 19 and even touched the lifetime low of 85.80 intraday on December 27, recording the steepest single-day fall in nearly two years.
According to Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, the rupee is expected to trade with a negative bias on elevated crude oil prices, overall strength in the US dollar and month-end dollar demand from importers.
Moreover, persistent selling pressure by foreign funds added further strain on the currency. Foreign Institutional Investors (FIIs) offloaded Rs 4,645.22 crore in the capital markets on a net basis on Tuesday, according to exchange data.
In 2024, foreign investors significantly scaled back their investments in Indian equities, with net inflows amounting to a little over Rs 5,000 crore, as elevated domestic valuations, coupled with geopolitical uncertainties prompted investors to adopt a more cautious stance.
In 2023, Rs 1.71 lakh crore net investment was made in the domestic equity market.
"However, any intervention by the RBI may support the rupee at lower levels. Volumes may remain thin due to the New Year holiday. USD/INR spot price is expected to trade in a range of 85.40 to 85.85," Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan - said.
India's external debt rose to USD 711.8 billion as of September this year, up 4.3 per cent over June 2024, as per the data released by the Finance Ministry. At the end of September 2023, the external debt stood at USD 637.1 billion.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.11 per cent at 108.01.
Brent crude, the global oil benchmark, surged 0.57 per cent to USD 74.41 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex closed 109.12 points, or 0.14 per cent lower, at 78,139.01 points. The Nifty settled on a flat note at 23,644.80 points.
On the domestic macroeconomic front, India's current account deficit (CAD) moderated marginally to USD 11.2 billion or 1.2 per cent of GDP year-on-year in the July-September quarter of 2024-25, according to Reserve Bank data.
The CAD, an indicator of the country's external payment scenario, was USD 11.3 billion or 1.3 per cent of GDP during the second quarter of 2023-24.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Nehru papers: Govt slams Sonia Gandhi, says such records belong in public archives
New Delhi (PTI) The government on Wednesday slammed Congress leader Sonia Gandhi for keeping "51 cartons of Jawaharlal Nehru papers" and sought their return to Prime Ministers' Museum and Library (PMML) so that scholars and Parliament can access the crucial historical records of 'Nehruvian' times, asserting that these documents "belong in public archives, not behind closed doors".
Union Culture Minister Gajendra Singh Shekhawat, in a post on X, also sought to clarify the Centre's written response in Parliament on December 15, and said, since the location of these papers is known, they are "not missing".
The clarification comes a day after Congress took a swipe at the Centre over its response in Lok Sabha to a query on documents related to the first prime minister.
"No documents related to India's first Prime Minister, Pandit Jawaharlal Nehru, have been found missing from the museum during the annual inspection of the PMML in the year 2025," Shekhawat had told Parliament in a written response to the query by BJP MP Sambit Patra.
After Nehru's death, the Teen Murti Bhawan in central Delhi became the Nehru Memorial Museum and Library (NMML), housing a rich collection of books and rare records. The NMML was renamed Prime Ministers' Museum and Library in 2023.
The Nehru papers have been a contentious issue between the ruling BJP and opposition Congress, and a section within the PMML has been pushing for "reclaiming" these papers, which were taken back by Sonia Gandhi several years ago.
Shekhawat, in his post on X, said Nehru papers are "not 'missing' from PMML". He added that the word 'missing' entails that the "whereabouts are unknown".
"In reality, 51 cartons of Jawaharlal Nehru papers were formally taken back by the family in 2008 from the Prime Ministers' Museum and Library (then NMML). Their location is known. Hence, they are 'not missing'," the Union minister said.
These papers were "handed over officially in 2008, on request", with records and catalogues maintained by PMML, he said.
Shekhawat said that scholars, researchers, students and citizens "have a right to access original documentary sources to arrive at a truthful and balanced understanding" of Jawaharlal Nehru's life and times.
"On one hand, we are being asked not to debate the blunders of that era. On the other, primary source material that could enable informed debate is kept out of public access.
"This contradiction cannot be ignored. This is no ordinary matter. History cannot be curated selectively. Transparency is the foundation of democracy and archival openness is its moral obligation which Mrs Gandhi and the 'family' need to uphold," he argued.
Shekhawat, in his long post, further wrote, "What does require an answer is this: Why have these papers not been returned despite multiple reminders from PMML including the recent reminders in January and July 2025? The nation deserves clarity."
"I respectfully ask Sonia Gandhi ji to explain to the country: What is being withheld? What is being hidden? The excuses being given by Smt Sonia Gandhi for not returning these papers are not tenable. The point is that why are important historical documents still outside the public archive?
"These are not private family papers. They relate to the first Prime Minister of India and form part of our national historical record. Such papers belong in public archives, not behind closed doors," Shekhawat argued in his post.
He also responded on X on Wednesday to a post a day ago by Congress general secretary in-charge communications Jairam Ramesh who wrote, "The truth was finally revealed in the Lok Sabha yesterday. Will there be an apology forthcoming?"
Shekhawat said, "The truth placed before the Lok Sabha is clear and on record."
"The Nehru Papers were taken out in 2008, during the UPA period, when public institutions were often treated as family preserves. Smt. Sonia Gandhi herself has acknowledged in writing that these papers are with her and promised to 'co-operate' on the matter," he said.
"In fact it would be more appropriate for you to urge Sonia Gandhi to honour her commitment and return these papers to PMML so that scholars, citizens, and the Parliament can access these crucial historical records and the truth of 'Nehruvian' times can be examined objectively," he said.
PMML Society, the key decision-making body of the PMML, is helmed by Prime Minister Narendra Modi as its president, and Defence Minister Rajnath Singh as the vice-president.
Earlier in the day, the Ministry of Culture, in a series of posts, said these documents, relating to the first prime minister of India, "form part of the nation's documentary heritage and not a private property".
"Their custody with PMML and access to citizens and scholars for research is vital," it said.
In the first post, it wrote, "On JN papers: Vide letter dated 29.04.2008 Shri M V Rajan, representative of Smt. Sonia Gandhi, requested that Smt. Gandhi wishes to take back all of the private family letters and notes of former PM Jawahar Lal Nehru.
"Accordingly, 51 cartons of Nehru Papers were sent to Smt. Sonia Gandhi in 2008."
The PMML has been in "continuous correspondence" with the office of Sonia Gandhi since then for return of these papers including the letters from PMML to her, dated 28-01-2025 and 03-07-2025," it said.
"Therefore, Nehru Papers are not 'missing' from PMML as their whereabouts are known," the ministry said.
