Weak Equities and increased dollar demand has caused the rupee to depreciate against the dollar.

Rupee’s Position As of 3:29 PM in the Market?

As per the report from Bloomberg,  3:29 PM had the dollar standing at a whopping 85.8562 rupees against the dollar.

What has happened to the Dollar?

According to a Reuters news agency the dollar index has seen a rise in percentage seeing it go as high as 0.1% because of the decrease in yuan in China and the recent 0.4% dip in Indonesia.

How Did The State Aid Impact the Rupee?

The report states that state banks were not very aggressive but aided in trying to overlap the loss in dollar selling.

Why Did The Rupee Depreciate?

Because of the hawkish approach shown by the US Federal Reserve's, the dollar showed appreciation in December which was the reason behind the rupee depreciation.

Investors Still Protect Falls in a Budget Deficiency 
The fed believes that by 2025 rates it will see a 50 basis point cut which ideally would be the case, but at the moment the expectation is for only a 38 basis point cut at the max.

Recently there has also been increased fluctuations in the Indian stock market as well.

The BSE Sensex and NSE Nifty are in a correction phase and finished the week in the flat territory after foreign investors offloaded $2 billion in bonds and equity. Such developments also impacted the robust Indian Rupee.