Dollar vs Rupee: The rupee fell 4 paise to its lowest level of 85.79 against the US dollar on Friday in the interbank foreign exchange market. That is, the value of 1 US dollar has become 85 rupees 79 paise. Investors' business sentiment was affected due to strong dollar demand from importers and soft trend in domestic stock markets. Foreign exchange traders said that the dollar strengthened against most currencies during the year 2024 and it remains strong this year as well.

The US dollar index breached the crucial 109-mark on Monday as the US currency's rally was driven by expectations of lesser interest rate cuts and the perception that the US economy would outperform other developed nations globally. The rupee opened on a weak note at 85.77 against the US dollar at the Interbank Foreign Exchange (FX) and touched a high of 85.73 and a low of 85.80 during the day's trade. The rupee ended the day at an all-time low of 85.79 against the US dollar, down 4 paise from its previous close.

Traders said the rupee got support at lower levels on reports of the Reserve Bank of India (RBI) selling the US dollar. On Thursday, the rupee fell 11 paise to a record low of 85.75 against the dollar. Earlier on December 27, during the day's trading, the rupee had gone to a record low of 85.80 against the dollar.

Traders said the market will focus on the policies of US President-elect Donald Trump. This could boost growth, but could also put pressure on prices and may force the US Federal Reserve to hold off on cutting interest rates for a longer period.

Anuj Chaudhary, Research Analyst, Mirae Asset Sharekhan, said that we expect the rupee to trade with a negative trend due to the strong US dollar and dollar demand from importers. Withdrawal of foreign institutional investors (FIIs) can also put pressure on the rupee. However, any further intervention by the RBI can support the rupee at lower levels. Chaudhary said that the dollar-rupee spot price is likely to remain in the range of 85.60-86.00.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.33 per cent at 109.03. Global oil benchmark Brent crude futures fell 0.43 per cent to USD 75.60 per barrel.

The 30-share BSE benchmark index Sensex, despite a positive start on Friday, closed down 720.60 points or 0.90 percent at 79,223.11. The National Stock Exchange (NSE) index Nifty also closed down 183.90 points or 0.76 percent at 24,004.75. According to stock market data, foreign institutional investors were net sellers in the capital market and sold shares worth Rs 4,227.25 crore on Friday.