The Indian rupee experienced a minor recovery on Friday, appreciating by 6 paise to 85.07 against the US dollar in early trade. This comes after the rupee hit an all-time low of 85.13 on Thursday, underlining the ongoing pressure on the domestic currency.

Forex traders indicated that the rupee is likely to remain in a weakening phase due to continued strong demand for the US dollar. The Dollar Index (DXY), which measures the greenback’s strength against a basket of six major currencies, is expected to stay elevated in the near term, with resistance near the 110 level. This follows reduced expectations for aggressive rate cuts by the US Federal Reserve in 2025, following its recent decision to lower rates by 25 basis points.