Thu, 22 Sep 2022 11:44 AM IST
THE INDIAN rupee on Thursday slumped to an all-time low of 80.47 against the US dollar in early trade today. The depreciation came as the US Federal Reserve's interest rate was hiked and its hawkish stance weighed on investor sentiments. The Indian rupee is trading at 80.47 against the US dollar, down by 51 paise from its previous close. The rupee opened at 80.27 and touched a record low of 80.47 a dollar in initial deals.
Forex traders said the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off moods and firm crude oil prices weighed on the local unit. On Wednesday, the rupee declined 22 paise to close at 79.96 against the dollar. 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.
Meanwhile, Indian stocks declined, though marginally, on Thursday morning in line with weak global cues. At the opening bell, Sensex traded at 59,303.96 points, down 152.82 points or 0.26 per cent, whereas Nifty traded at 17,671.95 points, down 46.40 points or 0.26 per cent.
Among the 30-share Sensex pack, Bajaj Finserv, HDFC, Wipro, HDFC Bank, Tech Mahindra, HCL Technologies, Power Grid and ICICI Bank were the major laggards. ITC, Maruti, IndusInd Bank and Hindustan Unilever were among the gainers in early trade. Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading lower.
The BSE benchmark had fallen by 262.96 points or 0.44 per cent to settle at 59,456.78 on Wednesday. The Nifty went lower by 97.90 points or 0.55 per cent to end at 17,718.35. Meanwhile, the international oil benchmark Brent crude climbed 0.50 per cent to USD 90.27 per barrel.
The US central bank seeks to achieve maximum employment and inflation at the rate of 2 per cent over the long run and it anticipates that the ongoing hikes in the target range will be appropriate. Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
(With Agencies Inputs)