The rupee dropped 14 paise and breached the crucial 85 level to close at an all-time low of 85.08 (provisional) against the US dollar on Thursday, as a hawkish stance from the US Federal Reserve sparked a broad dollar rally.
Forex traders said the Indian rupee breached the 85-mark for the first time and fell to a new record low on Thursday, as the US Federal Reserve adjusted its projections for 2025, signalling a more cautious monetary policy stance, pressuring emerging market currencies, including the Indian rupee.
The US Federal Reserve cut interest rates by 25-bps to 4.5 per cent, in line with estimates. However, it signalled only two rate cuts in 2025 from its previous expectations of four rate cuts.
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