MUMBAI, Jan 1 Reuters The Indian rupee weakened slightly on Wednesday, pressured by dollar bids from importers, which pushed the currency to a record closing low for the seventh consecutive session and affirmed the depreciation bias on the local unit.

The rupee closed at 85.6450 against the U.S. dollar, down from its close of 85.6150 in the previous session.

Global cues were muted on the day, with most markets shut for the New Year holiday.

While the first trading session of 2025 was relatively lacklustre, traders expect the rupee to remain under pressure in the near term due to persistent strength in the dollar and domestic pressure on account of slowing growth and a wider merchandise trade deficit.

The dollar index touched a more than twoyear peak of 108.58 on Tuesday before settling a tad lower, boosted by the prospect of higherforlonger Federal Reserve interest rates and potential policy changes under incoming U.S. President Donald Trump.

The rupee is expected to face temporary pressure, likely trading within a range of 85.20 to 85.80, said Amit Pabari, managing director at FX advisory firm CR Forex.

The currency declined to an alltime low of 85.8075 on Dec. 27 and weakened for the seventh consecutive year in 2024, largely on the back of a convergence of headwinds in the final quarter of the calendar year.

Tepid capital flows have also been a pain point for the rupee. Foreign investors logged net purchases of only 124 million of Indian equities in 2024, down…