Updated: Wed, 28 Sep 2022 11:14 AM IST
WITNESSING another low, the Indian Rupee on Wednesday slumped by 40 paise to an all-time low of 81.93 against the US Dollar in today's early trade as the strengthening of the American currency and risk-averse sentiment among investors weighed on the local unit. The rupee was trading at 81.9350 per US dollar, down from 81.58 in the previous session.
The rupee reached a record low of 81.6525 on Monday. On Tuesday, the rupee consolidated in a narrow range and settled 14 paise higher at 81.53 against the dollar. The 10-year US Treasury yield topped 4 per cent on Wednesday for the first time since 2010. The 10-year yield rose to the key psychological level a week after the two-year yield did it.
The rupee opened weaker on Wednesday as the dollar resumed its upward momentum supported by hawkish Fed talk. The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.40 per cent to 114.55. Meanwhile, investors are eying the RBI monetary policy meeting decision on Friday.
For the record, the US Federal Reserve had raised the repo rate by 75 basis points -- which is the third consecutive hike of the same magnitude, in line with expectations, which essentially means that investors will move towards the US markets for better and stable returns amid the monetary policy tightening.
Meanwhile, Benchmark indices began the trade on a bearish note on Wednesday with the Sensex tumbling 609 points in early trade, amid a weak trend in Asian markets. The 30-share BSE Sensex fell 608.8 points to 56,498.72 in the initial trade. Similarly, the broader NSE Nifty declined 182 points to 16,825.40.
Among the 30-share Sensex pack, NTPC, IndusInd Bank, HDFC, Axis Bank, Reliance Industries, ITC, HDFC Bank and Asian Paints were the major laggards. Sun Pharma, Mahindra & Mahindra, Dr Reddy's and Power Grid were among the winners.
The 30-share BSE index had ended 37.70 points or 0.07 per cent lower at 57,107.52 on Tuesday. The Nifty shed 8.90 points or 0.05 per cent to 17,007.40.
(With Agencies Inputs)