New Delhi: The rupee hit an all-time low of 80.67 on Thursday, depreciating as much as 71 paise against the US dollar, sources said. It happened after the US Federal Reserve hiked interest rate. The local currency was trading at 80.47 against the dollar, down by 51 paise from its previous close. The rupee declined 22 paise on Wednesday which was close at 79.96 against the dollar.
The rupee, however, opened at 80.27 and touched a record low of 80.47 a dollar. According to forex traders, the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off moods and firm crude oil prices weighed on local units.
Forex traders said the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off moods and firm crude oil prices weighed on the local unit. According to reports, the US Fed has hiked interest rates by 75basis points to 3-3.25%, which was the third straight 75 basis points’ hike. At a press conference, Fed Chair Jerome Powell reiterated that the Fed is committed to tame inflation, so it had to hike interest rates.
According to IFA Global Research Academy, the Reserve Bank of India may also revise its intervention function. The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.88% to 111.61.
