Rupee Hits Historic Low Against Dollar

The Indian rupee depreciated to a record low of 85 against the US dollar on December 19th, exceeding previous predictions, driven by the US Federal Reserve signaling fewer interest rate cuts in 2025 and pushing the dollar index to a two-year high.

This significant drop follows the Federal Reserve's decision to lower its key interest rate by a quarter percentage point, bringing it back to the level from December 2022, despite earlier indications suggesting a potential 85 rupee to dollar exchange rate.