Rupee tanks 90 paise to close at all-time low of 80.86 against US dollar
India Today
The rupee plunged 90 paise to close at an all-time low of 80.86 (provisional) against the US dollar on Thursday.
The rupee plunged 90 paise to close at an all-time low of 80.86 (provisional) against the US dollar on Thursday after the US Federal Reserve's interest rate hike and its hawkish stance weighed on investor sentiments.
Forex traders said the US Fed's rate hike and escalation of geopolitical risk in Ukraine sapped risk appetite.
Moreover, the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off mood and firm crude oil prices weighed on the rupee.
At the interbank foreign exchange market, the local currency opened at 80.27, then fell further to an all-time intra-day low of 80.95 against the American currency.
It finally ended at 80.86, down 90 paise over its previous close of 79.96.
The US Fed hiked interest rates by 75 basis points to 3-3.25 per cent. It was the third straight 75 basis points hike. Fed Chair Jerome Powell reiterated the central bank's commitment to taming inflation.
Focus will be on Bank of Japan (BoJ) and Bank of England (BoE) monetary policies next, forex traders said.
