Rupee sinks to all-time low of 80.15 against Dollar amid hawkish US Federal Reserve stance
The Rupee crash comes amid US Federal Reserve Chairman Jerome Powell's indication that interest rate hikes could continue for a longer period. The lowest that the Indian Rupee had hit against the Rupee was in September, when the currency hit 80.06.
The Indian Rupee sank to an all-time low of 80.15, as it dipped 31 paise against US Dollar following the US Federal Reserve Chairman Jerome Powell's indication that the interest rate hikes could continue for a longer period. On Monday morning, the rupee opened at 80.0750 against the US dollar. The Rupee had closed previously at 79.8650.
The lowest that the Indian Rupee had hit against the Rupee was in September when the currency hit 80.06. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.51 per cent higher at 109.35 till the last reports came in.
To note, the US inflation has slowed down a bit, and that has largely led investors to believe that the US Federal Reserve could ease its approach to interest rates. However, Powell clarified that it would not happen anytime soon. He indicated that the higher interest rates would continue for some time to curb inflation.
According to Finrex Treasury Advisors Head of Treasury Anil Kumar Bhansali, the rupee opened on a weak note after a hawkish US Federal Reserve kept rate hikes in prominence until inflation falls to two per cent.
The US Federal Reserve's actions will be watched by traders in the backdrop of the RBI allowing the Rupee to fall beyond 80, he said, adding that an indication of how the economy and labour markets will behave can be gauged from the Purchasing Managers Index (PMI) and US Nonfarm Payrolls (NFPR) results.
Meanwhile, the global oil benchmark Brent crude futures moved up 0.86 per cent to $101.86 per barrel. The domestic equity market front saw the 30-share Sensex trading 820 points lower at 58,008.69 (at 11:04 am), while the broader NSE Nifty was down 245.50 points (at 11:04 am) to 17,313.40. Foreign institutional investors offloaded shares worth Rs 51.12 crore and were net sellers in the capital market on Friday.