After the US Federal Reserve raised interest rates and gave a hint that more were to come in its fight against inflation, the rupee lost 88 paise to settle at a record low of 80.86 against the US dollar. Against the US dollar, the rupee closed at 80.86 on thursday, up from 79.98 on Wednesday. According to Jateen Trivedi, Research Analyst at LKP Securities, "the rupee plummeted after the hawkish comments from the Fed, which went for a 75 basis point raise for the third consecutive time, along with forecast of tighter measures needed to control the rising inflation rates."
In the afternoon trade, the US dollar index reached a level above $111.50, surpassing a 20-year high, following the rupee's more than 1% decline from 79.95 to 80.77. "Even despite good domestic fundamentals, we think the rupee's current downward trend may last for some time. A rising dollar will affect the local currency, but other regional currencies may outperform it. The current resistance level for spot USDINR is in the range of 81.25 to 81.40, and the previous peak of 80.12 would serve as support "Dilip Parmar, a research analyst at hdfc Securities, said. The Japanese yen dropped as well, dropping under 0.6860.
The US Federal Reserve raised interest rates by 75 basis points to 3.25%. It was the third consecutive 75 basis point increase, and Fed Chair Jerome Powell reaffirmed the commitment of the central bank to containing inflation. The dollar index, which measures the value of the dollar relative to a basket of six different currencies, increased by 0.41 percent to 110.793. Aside from the Fed's aggressive stance, Vladimir Putin's announcement of partial military mobilisation helped the US dollar continue gains against its major rivals. The price of a barrel of Brent crude oil was $90.52. In the meantime, dealers reported that indian stocks declined on thursday as a result of the US Fed's unexpected shift toward hawkishness.
In the afternoon trade, the US dollar index reached a level above $111.50, surpassing a 20-year high, following the rupee's more than 1% decline from 79.95 to 80.77. "Even despite good domestic fundamentals, we think the rupee's current downward trend may last for some time. A rising dollar will affect the local currency, but other regional currencies may outperform it. The current resistance level for spot USDINR is in the range of 81.25 to 81.40, and the previous peak of 80.12 would serve as support "Dilip Parmar, a research analyst at hdfc Securities, said. The Japanese yen dropped as well, dropping under 0.6860.
The US Federal Reserve raised interest rates by 75 basis points to 3.25%. It was the third consecutive 75 basis point increase, and Fed Chair Jerome Powell reaffirmed the commitment of the central bank to containing inflation. The dollar index, which measures the value of the dollar relative to a basket of six different currencies, increased by 0.41 percent to 110.793. Aside from the Fed's aggressive stance, Vladimir Putin's announcement of partial military mobilisation helped the US dollar continue gains against its major rivals. The price of a barrel of Brent crude oil was $90.52. In the meantime, dealers reported that indian stocks declined on thursday as a result of the US Fed's unexpected shift toward hawkishness.
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