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 San Jose 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 San Jose Sun.
More Information(Photo credit: David Butler II-Imagn Images) The Boston Red Sox will be looking to extend their winning streak to 10 games Sunday...
(Photo credit: Eric Canha-Imagn Images) In his 51st career start, Garrett Crochet accomplished two feats in one dominant outing:...
(Photo credit: Daniel Kucin Jr.-Imagn Images) Two teams that have long climbs if they're going to reach the postseason needed a sweep...
New Delhi [India], July 13 (ANI): The business valuation of the Indian Premier League (IPL) has surged an unprecedented USD 18.5 billion,...
(Photo credit: Dennis Lee-Imagn Images) All-Star Brent Rooker hit a tiebreaking two-run homer and drove in three runs overall to...
(Photo credit: Steve Roberts-Imagn Images) Heavyweight Derrick Lewis needed only 35 seconds to end the undefeated run of Tallison...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...
SAN FRANCISCO, California: Nvidia, the Silicon Valley chipmaker at the heart of the artificial intelligence boom, this week briefly...
REDMOND, Washington: Artificial intelligence is transforming Microsoft's bottom line. The company saved over US$500 million last year...
WASHINGTON, D.C.: A federal rule designed to make it easier for Americans to cancel subscriptions has been blocked by a U.S. appeals...
BASTROP, Texas: In a surprising turn at Elon Musk's X platform, CEO Linda Yaccarino announced she is stepping down, just months after...