Rupee vs Dollar: Dollar at all-time high at 81.07

The rupee dropped from 79.97 in the previous session to a record low of 81.04 to the dollar at the close of business.

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On Thursday, the Indian rupee hit a new low vs the US dollar as other Asian currencies also fell due to worries over the timing and extent of the US Federal Reserve’s impending policy tightening.

 

The rupee dropped from 79.97 in the previous session to a record low of 81.04 to the dollar at the close of business.

 

Since February 24, it was the local unit’s largest one-day fall.

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When Reuters asked traders about it, they were unable to clarify whether the Reserve Bank of India had made any interventions in the spot market that day.

 

Some traders claimed that while RBI may have intervened to halt the rupee’s drop, the action was not very forceful.

 

While this was going on, dealers at two state-run banks flatly denied that the RBI had sold dollars to stem the decline of the rupee.

These predictions caused Asian currencies to crash and stock prices to fall.

 

The Japanese yen rose as officials interfered in the foreign exchange market for the first time since 1998, which caused the dollar index to drop from its recent twenty-year high of 111.80.