HomeBusinessRupee tanks 90 paise to close at an all-time low of 80.86...

Rupee tanks 90 paise to close at an all-time low of 80.86 against the US dollar

US Fed hikes interest rates by 75 basis points to 3-3.25%

US Fed hikes interest rates by 75 basis points to 3-3.25%

The rupee on Thursday fell 90 paise to close at an all-time low of 80.86 (provisional) against the US dollar after the US Federal Reserve hiked interest rates and its tough stance on investor sentiments.

Forex traders said the US Fed rate hike and increased geopolitical risk in Ukraine have dampened risk appetite.

Besides, firming of the US currency in the overseas market, a soft trend in the domestic equity market, risky mood and firming in crude oil prices weighed on the rupee.

In the interbank forex market, the local currency opened at 80.27, then fell to an all-time intra-day low of 80.95 against the US currency.

It finally closed at 80.86, down 90 paise from its previous close of 79.96.

The US Fed raised interest rates by 75 basis points to 3-3.25%. This was an increase of 75 basis points for the third time in a row. Fed Chairman Jerome Powell reiterated the central bank’s commitment to containing inflation.

Forex traders said the focus would be on Bank of Japan (BoJ) and Bank of England (BOE) monetary policies.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.38% to 110.06.

In addition to the US Fed stance after Russian President Vladimir Putin announced a partial military mobilization, the US dollar extended gains against its major crosses.

“An aggressive Fed Chair Jerome Powell and Russian President Vladimir Putin’s escalation of geopolitical risks in Ukraine turned the green light for the King dollar,” said Dilip Parmar, Research Analyst at HDFC Securities.

The rupee, along with other Asian peers, fell to a record low.

“We believe that the current depreciation in the rupee may continue for some time given strong domestic fundamentals. The local currency will react to a strong greenback but may outperform regional currencies,” Mr. Parmar said. That said, adding that space USD- INR now has resistance in the region of 81.25 to 81.40 while the previous top 80.12 will act as support. Global oil benchmark Brent crude futures rose 0.36% to $90.15 a barrel.

On the domestic equity market front, the 30-share BSE Sensex ended 337.06 points or 0.57% lower at 59,119.72, while the broader NSE Nifty fell 88.55 points or 0.5% to 17,629.80.

Foreign institutional investors were net sellers in the capital markets on Wednesday as they sold shares worth Rs 461.04 crore, according to exchange data.

Hello Friends, My Name is Raushan Kumar. I am a Part-Time Blogger and Student. I am author of https://searchnews.in . We're dedicated to providing you the best of News, with a focus on Business, Health, Lifestyle, World, Tech, India, Gadget.


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