Rupee crosses 83 against dollar after US Fed rate hike
New Delhi, November 3, 2022
The rupee on Thursday crossed the 83-mark against the US dollar, hours after the US Federal Reserve hiked interest rates for the fourth time this year. It touched 83.08 before ending the day at 83.02.
The rupee had earlier opened at 83 against the dollar.
The Federal Reserve on Wednesday raised key rates by 75 basis points, the fourth such hike by it this year, to curtail rising inflation.
The chairman of US Fed, Jerome Powell, was quoted as saying by reports that it is firmly committed to lowering inflation.
The aggressive rate hike by the Federal Reserve will put further pressure on the stock markets globally, especially on rising economies like India.
The already weakened rupee, too, is likely to be impacted.
While the rupee has crossed the 83 mark against the US dollar on quite a few occasions this week in anticipation of the US Fed announcing a rate hike, now that it has actually happened, the domestic currency may weaken further, as was visible on Thursday.