By laksh5382 
Rupee The US dollar index on Friday recovered slightly from its all-time low and closed 10 paise higher at 85.03 (provisional) amid weakness in the US dollar and possible US dollar intervention. Reserve Bank of India (RBI),
Forex traders said the rupee may remain weak due to heavy demand for the dollar. The Dollar Index (DXY) is expected to remain elevated amid reduced chances of a significant Fed rate cut in 2025, with near-term resistance near the 110 level.
The Federal Reserve cut rates by 25 basis points on Wednesday, but its forward guidance to 2025 has softened, with expectations for four rate cuts reduced to just two.
At the interbank foreign exchange, the rupee opened at 85.07 against the greenback. During the day it witnessed an intraday high of 84.95 and low of 85.12 and ended the session at 85.03 (provisional) against the dollar, 10 paise higher than its previous close.
On Thursday, the rupee weakened by 19 paise and crossed the important level of 85 to close at an all-time low of 85.13 against the US dollar.
Traders said the rupee recovered from lower levels in the latter half of the day due to weakness in the US dollar index and possible intervention by the Reserve Bank of India (RBI). Fall in crude oil prices also supported the rupee at lower levels.
“We expect the rupee to trade with a negative bias due to weak domestic markets and overall strength in the US dollar amid a dovish Fed and improving US economy,” said Anuj Chaudhary, research analyst at Mirae Asset Sharekhan.
Choudhary further said that FII outflows may also impact the rupee. However, any intervention by RBI or any further improvement in crude oil prices may support the rupee at lower levels.
“Traders can take cues from core PCE price index, personal spending and revised consumer sentiment data from the US. USD-INR spot price is expected to trade in the range of 84.80 to 85.15,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14 percent lower at 108.26.
Global oil benchmark Brent crude fell 0.99 per cent to US$72.16 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex closed at 78,041.59, down 1,176.46 points or 1.49 per cent, while the Nifty closed at 23,611.60, down 340.10 points or 1.42 per cent.
Foreign institutional investors (FIIs) were net sellers in the capital market on Thursday as they sold shares worth Rs 4,224.92 crore, according to exchange data.