Rupee vs Dollar Today:  The rupee on Thursday fell 14 paise to cross the 85 per dollar mark in the interbank foreign exchange market and closed at an all-time low of 85.08 (provisional) per dollar at the end of trading. According to foreign exchange traders, the rupee crossed the 85 level for the first time and reached its new all-time low. 

Emerging market currencies including the Indian rupee came under pressure after the US Federal Reserve adjusted its estimates for 2025. The US Federal Reserve has cut the key interest rate by 0.25 percent to 4.5 percent as expected. The rupee opened on a weak note in the interbank foreign exchange market and crossed the 85 level against the dollar. 

Rupee hits all time low

Investor sentiment was affected by dollar demand from importers, foreign capital outflows and a weak trend in domestic equity markets and the rupee closed at an all-time low of 85.08 per dollar (provisional) against the US currency, down 14 paise from its previous close. The rupee had closed at 84.94 against the US dollar on Wednesday. 

Meanwhile, the dollar index, which shows the position of the US dollar against six major currencies, fell by 0.13 percent to 107.88. International standard Brent crude fell by 0.05 percent to $ 73.35 per barrel. According to stock market data, foreign institutional investors (FIIs) remained sellers on Wednesday and sold shares worth Rs 1,316.81 crore net. 

What will be the effect on your pocket

The fall in the rupee makes imported goods expensive. Whether it is the products purchased directly or the raw materials and parts used in the manufacture of an item, the cost of all increases. For example, a $100 product cost Rs 8,300 a year ago, which has now become Rs 8,500. This rising cost affects every area from your expenses to investments.

The price of crude oil may also increase due to the dollar becoming expensive. When oil becomes expensive, the cost of transportation increases, due to which the prices of daily needs may also rise. In this way, the weakness of the rupee can put your household budget under more pressure.