PTI mumbai

The rupee depreciated 4 paise to close at a record low of 85.79 against the US dollar on Friday, as strong dollar demand from importers and a muted trend in domestic equities weighed on investors' sentiments.

Forex traders said the dollar gained against most currencies during 2024 and continued to remain on a strong footing this year.

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.

At the interbank foreign exchange, the rupee opened on a weak note at 85.77. During intra-day deals, it sank to its lowest level of 85.80 and touched the high of 85.73 against the American currency.

The local unit settled for the day at a record low of 85.79, registering a fall of 4 paise over its previous close.

Reports of RBI selling US dollars supported the rupee at lower levels, traders said.