Rupee weakens a littleA Day after breaking through 78 per Dollar for the first time ever
The rupee began the day down, a day after breaking through 78 versus the dollar for the first time and hitting a new low of 78.29.
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The rupee began lower on Tuesday, a day after breaking through 78 versus the dollar for the first time and plunging to a new 20-year low of 78.29 in the previous session, as the greenback maintained its hold on a fresh 20-year high.
As investors braced for rapid Federal Reserve rate hikes and a possible recession, nearly every major asset suffered losses.
The rupee was recently trading two paise worse at 78.02 per dollar in early trade.
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Markets have hurried to price in harsher hikes after a sizzling US inflation estimate on Friday. The Fed’s biggest move in nearly three decades is expected on Wednesday, with futures pricing in a 93 percent chance of a 75-basis-point hike.
The dollar soared as stocks and bonds were dumped, hitting one-month highs against the euro, Australian dollar, New Zealand dollar, Swiss franc, and Canadian dollar overnight.
The dollar index, which tracks the greenback’s performance versus six major currencies, hit a two-decade high of 105.29 in early Asia trade and lingered slightly below it.