Rupee Hits Fresh All-Time Low Of 84.95 Vs Dollar Ahead Of United States Fed Meeting

Last Updated: December 18, 2024, 15:13 IST

The rupee might touch 85 versus the United States buck on Thursday if the United States Fed is somewhat hawkish in its tone, states Anil Kumar Bhansali, head of treasury and exec supervisor at Finrex Treasury Advisors LLP.

The Indian rupee on Wednesday struck its fresh lowest level of 84.95 to a United States buck, amidst paper money acquiring in advance of the FOMC conference where the United States Federal Reserve is anticipated to reduce rates of interest by 25 bps and will certainly provide future advice.

The United States Fed choice will certainly be revealed at 12.30 am Indian Standard Time (IST) tonight.

“The rupee makes a lowest level of 84.95 as the buck acquiring proceeds, in advance of the FOMC conference where the United States Fed will certainly reduce prices by 25 bps and will certainly provide future advice. The rupee might touch 85 tomorrow if the United States Fed is somewhat hawkish in its tone,” said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

The rupee remains under pressure from both global and local factors.

Domestically, the rising trade deficit added strain on the rupee. This increase in trade deficit was driven largely by record-high gold imports in November, said CR Forex Advisors MD Amit Pabari.

India’s exports in November contracted 4.85 per cent year-on-year to $32.11 billion, while the trade deficit widened to an all-time high of $37.84 billion due to a record surge in gold imports.

The country’s gold imports in November reached a record high of $14.86 billion, registering a four-fold increase, mainly on account of festival and wedding demands, according to commerce ministry data.

Gold imports stood at $3.44 billion in November 2023.

“The USD/INR pair is expected to trade within a range of 84.50 to 85.00 in the near-term,” Pabari included.