Rupee falls 9 paise to close at fresh record low of 85.20 against U.S. dollar

Rupee hits all-time low at 85.20 against USD due to strong greenback, rising crude oil prices, and weak domestic markets.

The rupee extended its slide for the second straight session and depreciated 9 paise to settle at a fresh all-time low of 85.20 (provisional) against the U.S. dollar on Tuesday (December 24, 2024). The rupee was dragged by a strong greenback against major crosses overseas and subdued domestic equities.

According to analysts, increased demand for the dollar due to month-end payment obligations and the fear of an aggressive import tariff by the Donald Trump administration in the U.S. strengthened the greenback.

“Besides, surging crude oil prices pushed the rupee down further,” they added.

At the interbank foreign exchange, the rupee opened at 85.10 and touched the lowest ever level of 85.21 against the greenback during intra-day. The unit finally ended the session at a fresh all-time low of 85.20 (provisional) against the dollar, registering a loss of 9 paise from its previous close.

On Monday (December 23, 2024), the rupee settled 7 paise lower at 85.11 against the U.S. dollar.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee fell to a fresh all-time low on weak domestic markets and a strong U.S. dollar due to increased demand from importers and surging crude oil prices.

He said a hawkish tone of the U.S. Federal Reserve and an improved U.S. economy may further support the dollar.