The Indian rupee closed at its weakest closing level on record for the eighth consecutive session on Thursday, as a widened arbitrage between the non-deliverable and outright forwards market added to the currency's troubles.

Forex traders say the dollar gained against most currencies during 2024 and continued to remain on a strong footing this year.

At the interbank foreign exchange, the rupee opened on a weak note and witnessed an intra-day low of 85.79 and a high of 85.68 against the American currency.

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.