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Rupee depreciates against US dollar on Friday

03 Jan 2025 Evaluate

Indian rupee depreciated against the US dollar on Friday due to the relentless rise in the US dollar. Traders were cautious with credit rating agency ICRA’s report stating that banks credit growth may ease to 9.7-10.3 per cent in FY26, weighed down by the persisting high credit-to-deposit (CD) ratio and implementation of the proposed changes in the liquidity coverage ratio (LCR) framework. ICRA has revised its credit growth estimate downwards to 10.5-11 per cent for FY25 from its earlier estimate of 11.6-12.5 per cent. On the global front, dollar was on track for its strongest weekly performance since early December on Friday, propped up by expectations that the U.S. economy will continue to outperform its peers globally this year and U.S. interest rates will stay elevated for longer.

Finally, the rupee ended at 85.79 (Provisional), depreciated by 4 paise from its previous close of 85.75 on Thursday. The currency touched a high and low of 85.80 and 85.73 respectively.

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