Indian rupee tumbled against dollar on Thursday after the US Federal Reserve raised interest rates and maintained a hawkish stance. Traders were concerned after Shanaka Jayanath Peiris, Division Chief of Regional Studies Division, Asia Pacific Department at the IMF said that the Asia Pacific region is facing three main risks, including due to global financial tightening and a slowdown in China. Peiris also said that currencies in the region have depreciated sharply while public debt ratios have increased. Besides, Reserve Bank of India’s monetary policy committee (MPC) meet to be scheduled later in the day. On the global front, Sterling slid against the dollar on Thursday after the Federal Reserve jacked up interest rates again, and as traders awaited the latest decision from the Bank of England (BoE). The greenback rose along with U.S. bond yields after Fed Chair Jerome Powell signalled that interest rates were likely to have to rise higher than expected to crush inflation.
Finally, the rupee ended at 82.90 (Provisional), weaker by 10 paisa from its previous close of 82.80 on Wednesday. The currency touched a high and low of 82.92 and 82.74 respectively.
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