The Indian rupee weakened past 85 to the U.S. dollar for the first time on Thursday after a markedly hawkish turn in the Federal Reserve's future rate projections pegged back Asian currencies across the board.
The rupee hit a low of 85.0650 in early trading, down 0.1% from its close at 84.9525 in the previous session.
The dollar and U.S. Treasury yields climbed after the Fed cut rates by 25 basis points on Wednesday, but its Summary of Economic Projections showed two rate cuts in 2025, down from four in September.