USD/INR: Rupee Trades at Record Low Amid Firm Dollar, Tariff Concerns on January 9, 2025

On January 09, 2025, the Indian rupee traded at 85.92 to the U.S. dollar, surpassing its previous record low of 85.86 hit earlier this week. As per news reports, further losses in the rupee were capped amid dollar sales by state-run banks.

Dollar Strength, Mixed Asian Currencies

The dollar index reached 109, rising 0.3% today, while Asian currencies showed mixed performance. The 10-year U.S. Treasury yield climbed to 4.73% on Wednesday, its highest since April 2024, before slightly declining during Asian trading.

The dollar and U.S. bond yields have risen in recent weeks due to expectations of cautious rate cuts by the Federal Reserve and the potential inflationary effects of incoming U.S. President Donald Trump’s policies.

The release of the Fed’s December meeting minutes on Wednesday highlighted growing concerns about inflation, with uncertainty surrounding Trump’s policies adding to the economic outlook’s volatility.

Key U.S. Economic Events Ahead

Investors are keeping a close eye on important events ahead, such as the U.S. December jobs report on January 12, inflation data on January 15, and President-elect Donald Trump’s inauguration on January 20.

Brent Crude Oil Falls

Brent crude oil futures are 0.11% down, at $76.08 per barrel as of January 9, 2025. Oil prices fell for the second consecutive day on Thursday following significant increases in fuel inventories in the U.S., the world’s largest oil consumer.

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