Rupee tumbles to all-time low of 80.47 against Dollar

The currency was trading at 80.47 versus the dollar at the interbank foreign exchange, down 51 paisa from its previous close. Initial trades saw the rupee drop to a record low of 80.47 to the dollar.

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In early trade on Thursday, the rupee dropped 51 paise to an all-time low of 80.47 against the US dollar after the US Federal Reserve raised interest rates and adopted a more hawkish attitude, which soured market sentiments.

 

The currency was trading at 80.47 versus the dollar at the interbank foreign exchange, down 51 paise from its previous close. Initial trades saw the rupee drop to a record low of 80.47 to the dollar.

 

 

 

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The local currency, according to forex traders, was hurt by the strength of the American dollar on the international market, a flat domestic equity market, risk-off moods, and firm crude oil prices.

The rupee lost 22 paise on Wednesday, ending the day at 79.96 against the dollar. The US Federal Reserve raised interest rates by 75 basis points to 3.25%. It was the third consecutive increase of 75 basis points.

 

In his news conference, Fed Chair Jerome Powell reaffirmed the Fed’s commitment to containing inflation.

“Given the broad dollar strength, the Reserve Bank of India too may look to revise its intervention function. We are likely to see an 80.10-80.50 range on Thursday,” IFA Global Research Academy said.

The emphasis will be on the monetary policies of the Bank of Japan (BoJ) and the Bank of England (BoE), it said, adding that the BoE is anticipated to raise rates by 50 basis points.

 

The dollar index, a measure of the value of the US dollar versus a basket of six other currencies, increased by 0.88 percent to 111.61.

 

To reach USD 90.27 per barrel, benchmark Brent crude futures increased by 0.49 percent. On the local equity market, the broad NSE Nifty was up 41.15 points or 0.23 percent to 17,677.20, while the 30-share BSE Sensex was trading 166.77 points or 0.28 percent higher at 59,290.01.

According to exchange data, foreign institutional investors sold shares worth Rs 461.04 crore on Wednesday, making them net sellers in the capital market.