ANI
22 Sep 2022, 18:33 GMT+10
Mumbai [India], September 22 (ANI): The Indian rupee closed at a record low of 80.86 to the US dollar, down from 79.9750 in the previous session. It was the biggest single-day fall for rupee since February 24.
The rupee had opened at a record low of 80.2850 against the dollar, down from 79.9750 in the previous session.
The US Federal Reserve had raised the repo rate by 75 basis points, in line with expectations. The Fed also hinted that more rate hikes were coming and that these rates would stay elevated until 2024.
Most Asian currencies opened weaker, with the Chinese yuan slipping below 7.10 against the dollar.
Swastika Investmart, Research Head, Santosh Meena said it was apparent from the recent action and commentary of the US Federal Reserve that it was still far away from the end of the rate hike cycle.
He added: "We reckon that the rupee is expected to remain under pressure despite the improvement in domestic economic prospects..."Speaking on the movement of rupee in the days to come, he said technically, the USD-INR (US dollar and Indian rupee) pair saw a breakout of ascending triangle formation that may lead to further weakness in the rupee towards the 81.5-82 zone, however, 81 will be an intermediate and sacrosanct support level for the rupee.
Some forex traders said the Reserve Bank of India (RBI) may have stepped in to arrest the decline of local currency, however, the intervention was not too aggressive.
Religare Broking Vice President for Commodity and Currency Research Sugandha Sachdeva said the rupee had plunged to a fresh record low of 80.61 mark amid signs of escalating Russia-Ukraine tensions and a hefty rate hike of 75 bps by the US Federal Reserve for the third time in a row, which has led to a vertical rally in the greenback towards two-decade highs of 111.78 level.
Sugandha Sachdeva also added the slowing portfolio flows in the domestic markets further accentuated the decline witnessed in the rupee-dollar exchange rate, even as weakening crude oil prices are still capping losses in the domestic currency.
The local currency, all through the session, remained under pressure after the US Federal Reserve sprung a hawkish outlook.
LKP Securities VP Research Analyst Jateen Trivedi said: "Rupee records low prices as fall below 80.75 registers after hawkish commentary from Fed's along with hike of 0.75 bps hike with the forecast of tighter policies needed to control the high inflation rates." (ANI)Get a daily dose of Milwaukee Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Milwaukee Sun.
More InformationWASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
GENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
GOP leaders are determined to advance Trump's signature agenda. But the bill's complexity, internal party fractures and Democratic...
Scientists have widely agreed that the persistent rise in greenhouse gas emissions since the Industrial Revolution is the primary driver...
BEIJING, June 28 (Xinhua) -- Here are the latest Chinese sports headlines from the past week: 1. China's Wang Xinyu finishes runner-up...
Emanuel Wilson has proven to be more than just a feel-good undrafted story Wes Hodkiewicz Jeffery from Monticello, WI Hello Wes,...
The winning caption idea will be turned into a gameday sign for fans to use at Lambeau Field; contest winner to receive a trip to a...
Michael Hull Over the course of the next few weeks, we will be taking an in-depth look at the Bengals' 2025 opponents. Next up, the...