The US dollar has strengthened significantly as it is poised to end the week on a high note, with the US Dollar Index (DXY) reaching 108.40, reflecting a 1.37% weekly gain. This bullish trend is attributed to the Federal Reserve's recent decision to maintain a hawkish stance, tempering expectations for aggressive rate cuts. Concurrently, the Indian rupee has faced challenges, hitting a record low of 85.10 before recovering slightly to close at 85.02 against the US dollar on December 20. This marked a decline from the previous week's closing of 84.79. India's foreign exchange reserves have also decreased, falling by $1.98 billion to $652.87 billion as of December 13, marking a nearly six-month low. The decline in reserves is attributed to various factors, including a softening US dollar index and potential intervention by the Reserve Bank of India. Meanwhile, gold prices experienced fluctuations, rising approximately 1.2% to $2,617.81 per ounce following the release of soft US inflation data, although they remain set for a weekly loss.