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Rupee ends at all-time low amid Fed rate hike

22 Sep 2022 Evaluate

Indian rupee concluded substantially weaker to hit new all-time low against US dollar on Thursday, after US Federal Reserve's interest rate hike and its hawkish stance. Sentiments were fragile as recession worries gripped world markets after Federal Reserve officials raised interest rates by 75 bps for the third consecutive time and forecast they would reach 4.6 percent in 2023, stepping up their fight to curb inflation that's persisted near the highest levels since the 1980s. Muted trend in domestic equities and firm crude oil prices too weighed on the rupee. On the global front, Japanese yen strengthened on Thursday after authorities intervened in the foreign exchange market to shore up the battered currency for the first time since 1998, although trading was choppy.

Finally, the rupee ended at 80.86 (Provisional), weaker by 90 paisa from its previous close of 79.96 on Wednesday. The currency touched a high and low of 80.95 and 80.27 respectively.


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