Rupee breaches Rs 85 per dollar mark for first time ever

The Indian rupee is extending downside and slipped below Rs 85 per dollar mark for the first time ever. Sharp spike in US dollar overseas coupled with weak local equities added pressure on the local unit. Indian shares opened on a weak note Thursday after the U.S. Federal Reserve delivered a 25-bps rate cut as expected but revised its projections to signal just two interest rate cuts next year compared to the four previously forecast, citing stubbornly high inflation. The benchmark S&P/BSE Sensex was down 923 points, or 1.2 percent, at 79,258 in early trade as the dollar and bond yields jumped after hawkish Fed rate cut. The broader NSE Nifty index was down 250 points, or 1 percent, at 23,947. At the interbank foreign exchange, the rupee opened on a weak note at 85.03 and breached the crucial 85.00 level against the greenback to hit a low of 85.08 so far during the day.

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