TIWN
Mumbai, Sep 22 (TIWN) The rupee depreciated 88 paise to close at an all-time low of 80.86 against the US dollar after the US Federal Reserve hiked interest rates and dropped hint that more were to come in its war against inflation.
It finally ended at 80.86, down 90 paise over its previous close of 79.96. 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. Fed Chair Jerome Powell reiterated the central bank's commitment to taming inflation. Focus will be on Bank of Japan (BoJ) and Bank of England (BoE) monetary policies next, forex traders said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.38 per cent to 110.06. Besides the hawkish US Fed stance, the US Dollar extended gains against its major crosses after Russian President Vladimir Putin announced partial military mobilisation. "An aggressive Fed Chair Jerome Powell and Russian President Vladimir Putin's escalation of geopolitical risk in Ukraine turned on the green light for King Dollar against most currencies," said Dilip Parmar, Research Analyst, HDFC Securities. Rupee along with other Asian peers tumbled to a record low.
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