Indian rupee drops to record low against US dollar

The Indian rupee depreciated 10 paise to hit a new all-time low of 85.25 against the U.S. dollar in early trade on Thursday, dragged down by the unabated outflow of foreign capital amid increased month-end demand of the American currency.

Positive sentiment in domestic equity markets failed to support the Indian currency as the greenback index remained elevated while crude oil prices were on upward move, forex traders said.

At the interbank foreign exchange, the rupee opened weak at 85.23 and slipped further to hit a life-time low of 85.25 against the greenback in initial deals, registering a loss of 10 paise against its previous closing level.

On Tuesday, the rupee fell 4 paise to settle at a record low of 85.15 against the USD. The forex markets were closed on Wednesday for Christmas.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally lower by 0.11% but remained elevated at 107.90, amid soaring U.S. Treasury yields and the fear of delayed interest rate cuts by the U.S. Federal Reserve.

Brent crude, the global oil benchmark, rose 0.38% to $73.86 per barrel in futures trade.

On the domestic equity market front, the 30-share benchmark index Sensex was trading higher by 335.63 points, or 0.43% at 78,808.50 points. The Nifty was up 103.55 points, or 0.44%, at 23,831.20 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday (December 24, 2024), as they offloaded shares worth ₹2,454.21 crore, according to exchange data.