Rupee Plunges To 74.08 Against Dollar After Fed Reserve Policy: All You Need To Know

Rupee Vs Dollar Rate Today: The rupee lower to 74.08 against dollar amid a stronger American currency after the US Federal policy statement indicated an interest rate hike sooner than expected.

Depreciating for the eighth consecutive session, the rupee plunged by as much as 76 paise against the US dollar on Thursday, June 17, to settle at 74.08 amid a stronger American currency after the US Federal policy statement indicated an interest rate hike sooner than expected. At the interbank foreign market, the local unit opened weak at 73.65 against the dollar and registered an intra day high of 73.57. It witnessed a low of 74.08 against the dollar. In an early trade session, the rupee slumped 33 paise to 73.65 against the greenback. (Also Read: US Fed Signals Higher Rates In 2023, Bond-Buying Taper Talks As Virus Fades )The domestic unit finally closed at 74.08, registering a fall of 76 paise over its previous close. On Wednesday, June 16, the domestic unit had settled at 73.32 against the dollar. The local unit has lost as much as 128 paise in the eight trading sessions to Thursday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.60 per cent to 91.67. Mr Amit Pabari, CR Forex:''Someone might not have expected that even a ‘dot' matters a lot. A higher revision of inflation from 2.4 per cent to 3.4 per cent for 2021 and growth forecast from 6.5 per cent to 7.00 per cent along with few upward revisions for 2022 and 2023 led 13 members to turn hawkish for two rate hikes in 2023, Fed's dot plot suggested. The global risk-on sentiment was seen disappearing as demand for safest security- US treasuries jumped and yield rose to 1.58 per cent. On the back of this, US equities corrected by 0.70 per cent-0.80 per cent and currently Asian markets are trading lower by the same.