In terms of the US dollar, the rupee plunges 90 paise to end the day at an all-time low of 80.86.

In terms of the US dollar, the rupee plunges 90 paise to end the day at an all-time low of 80.86.

The U.S. Federal Reserve’s interest rate hike and its hawkish posture on Thursday impacted investor emotions, causing the rupee to fall 90 paise to settle at an all-time low of 80.86 (provisional).
Forex traders claimed that the U.S. Fed’s rate increase and the increase in geopolitical risk in Ukraine reduced their risk appetite.
Additionally, the rupee was hurt by the strength of the dollar in international exchange markets, a flat domestic equity market, a risk-off mindset, and rising crude oil prices.
The local currency began trading at 80.27 on the interbank foreign exchange market before dropping even more to an intraday low of 80.95.
At 80.86 in the end, it was down 90 paise from the previous close of 79.96.
The US Fed raised its interest rates by 75 basis points, to 3.35%. It was the third 75 basis point hike in a row. The Fed’s chairman, Jerome Powell, reiterated the organization’s commitment to keeping inflation under control.
According to currency dealers, the monetary policies of the Bank of England (BoE) and the Bank of Japan (BoJ) will then be the focus.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased by 0.38% to 110.06.
Along with the hawkish U.S. Fed stance, Russian President Vladimir Putin’s announcement of partial military mobilisation helped the U.S. dollar extend gains against its major crosses.
In the local equity market, the broad NSE Nifty fell 88.55 points, or 0.5%, to 17,629.80, while the 30-share BSE Sensex fell 337.06 points, or 0.57%, to end at 59,119.72.
According to exchange data, foreign institutional investors sold shares worth 461.04 crores on the capital market on Wednesday, making them net sellers.

 

divya

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