INR extends downside on strong dollar overseas; Sharp sell off in local equities weigh

The Indian rupee depreciated 4 paise to close at a record low of 85.79 (provisional) against the US dollar on Friday, as strong dollar demand from importers and a muted trend in domestic equities weighed on investors' sentiments. The US dollar index catapults to a fresh two-year high amid expectations of a slower pace of interest rate cuts by the Federal Reserve in 2025. Local shares succumbed to heavy selling pressure on Friday, after having logged strong gains the previous day. The benchmark S&P/BSE Sensex fell 720.60 points, or 0.90 percent, to 79,223.11, following its best session in six weeks the previous day. The NSE Nifty index tumbled 183.90 points, or 0.76 percent, to 24,004.75. The US dollar index breached the crucial 109-mark. The uptrend in the American currency was underpinned by expectations of fewer rate cuts and a view that the US economy will continue to outperform its peers globally.

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