The Indian Rupee has depreciated to a record low of 84.61 against the US Dollar, marking a fresh setback for the currency. This comes after former US President Donald Trump's threat to impose a 100% tariff on BRICS nations if they fail to continue using the US Dollar. Trump's demand for a commitment from BRICS countries not to create a new currency or back alternatives to the dollar has put additional pressure on global markets, including the Indian Rupee. Along with this geopolitical uncertainty, the rupee faces mounting challenges due to a slow-down in India's economic growth, which grew at just 5.4% in the July-September quarter, its slowest pace in two years.

Moreover, India has witnessed significant foreign portfolio outflows, with FPIs selling over Rs 4,383 crore in stocks on Friday alone. This has contributed to the depreciation of the rupee, which also faces a stronger dollar, reflected in a 0.5% rise in the dollar index. Experts, however, note that December has historically been a positive month for the rupee, with a 70% appreciation record over the past decade. The currency's outlook remains uncertain, and unless it decisively breaks below the 84.20 level, it may continue to face pressure in the short term.