GUWAHATI: The Indian rupee fell to an all-time low on Thursday, December 19, breaching the 85 mark against the US dollar.
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The currency depreciated by 12 paise, hitting a low of 85.0675 during intraday trading.
The rupee’s slide from 84 to 85 occurred within two months, marking a quicker depreciation compared to the 14 months it took to decline from 83 to 84. The transition from 82 to 83 had previously spanned a 10-month period.
Riya Singh, Research Analyst at Emkay Global, attributed the rupee’s weakness to structural challenges such as India’s twin deficits and subdued export performance. “While RBI interventions may curb volatility, sustained dollar strength and rising global interest rates add to the rupee’s vulnerability,” Singh stated.
Other Asian currencies fell in value as well, including the Korean won, Malaysian ringgit, and Indonesian rupiah, which weakened by 0.8%-1.2% in the wake of the Federal Reserve’s dot plot indicating only two rate cuts next year, down from the four cuts suggested in September.
