Indian Rupee hits all-time low, breaches Rs 85 against US dollar

The Indian Rupee fell to an all-time low against the US dollar on Thursday, breaching the Rs 85 mark for the first time.

The decline follows the US Federal Reserve cut in key interest rates by 25 bps and signaled fewer rate cuts in 2025. This led to an additional strain on the currency, which has already been under pressure due to weak capital inflows and other challenges.

In the early trade, the rupee dropped to 85.0650 against the US dollar, compared to 84.9525 on Wednesday.

It is significant to note that the rupee’s depreciation has been very fast in the recent time, with the fall from Rs 84 to Rs 85 occurring within just two months.

In contrast, the drop from Rs 83 to Rs 84 took 14 months, while it took 10 months for the rupee to weaken from Rs 82 to Rs 83.

The decline in Rupee value against dollar is not an isolated event as many other Asian currencies also witnessed a similar trend on Thursday.

The Korean won, Malaysian ringgit, and Indonesian rupiah also fell by 0.8%-1.2% during the day.

The sell-off in Asian currencies followed the Federal Reserve’s latest policy guidance.