By laksh5382 
Rupee It fell 12 paise to an all-time low of 85.06 against the US dollar in early trade on Thursday as the US Federal Reserve’s hawkish stance led to a broader rally in the greenback.
The US Federal Reserve has adjusted its projections for 2025, indicating a more cautious monetary policy stance, putting pressure on emerging market currencies including the Indian rupee, Forex traders said.
At the interbank foreign exchange, the rupee opened on a weak note and breached the crucial 85.00 level against the greenback.
The dollar fell to an all-time low of 85.06 against the US currency, registering a decline of 12 paise over its previous close, amid demand from importers, foreign fund outflows and a subdued trend in domestic equities.
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On Wednesday, the rupee fell by 3 paise and closed at an all-time low of 84.94 against the US dollar.
Treasury and acting chief Anil Kumar Bhansali said the rupee was under severe pressure as the US dollar weighed on the Fed’s dovish outlook and hit a two-year high of 108.04, while the US 10-year bond yield rose to 4.51 per cent. Director Finrex Treasury Advisors LLP.
The US Fed cut rates by 25 basis points, but had a tough outlook as it said it could take another year or two for inflation to reach 2 percent. It expects a cut of 50 bps in 2025 and 50 bps in 2026.
“Broad selling in equities, commodities and bonds has kept the dollar well bid. We expect a slow and steady depreciation as the Reserve Bank of India (RBI) may defend key levels, though may not change direction, Bhansali said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 percent higher at 108.03.
Brent crude, the global oil benchmark, fell 0.42 per cent to $73.08 per barrel in futures trade as the dollar bounced back after signs of a slow easing and the Fed’s hawkish stance.
In the domestic equity market, the 30-share BSE Sensex was trading 910.95 points or 1.144 per cent lower at 79,271.25 in morning trade, while the Nifty was down 281.15 points or 1.16 per cent at 23,917.70.
According to exchange data, foreign institutional investors (FIIs) sold ₹1,316.81 crore in the capital market on a net basis on Wednesday.