The rupee depreciated 13 paise to close at fresh record low of 85.65 (provisional) against the US dollar on Tuesday, ending the year with a sharp 3 per cent loss on significant foreign fund outflows and a strong greenback in global markets.

Looking ahead, the intervention from the central bank is likely to reduce as direct intervention in the currency market led to a deficit in the rupee liquidity.

Rupee hits record low against U.S. dollar due to foreign fund outflows, strong greenback, and domestic economic concerns.

At the interbank foreign exchange, the rupee opened on a weak note at 85.54 then fell further to 85.61 against the American currency, registering a fall of 9 paise over its previous close, on month-end dollar demand from importers and oil marketing companies.