The Indian rupee fell to a record low against the US dollar on Thursday, as Asian currencies fell on concerns about the pace and magnitude of the US Federal Reserve’s upcoming policy tightening.
The rupee fell to a record low of 81.04 per dollar, down from 80.86 the previous session.
We checked the exchange rate of the Rupee in 2012 was around 57.2189.
It was the local unit’s worst single-day drop since February 24.
Reuters spoke with traders who couldn’t confirm whether the Reserve Bank of India intervened in the spot market during the session.
According to some traders, the RBI may have intervened to stop the rupee’s decline, but the intervention was not overly aggressive.
Meanwhile, traders at two state-owned banks flatly denied that the RBI sold dollars to stem the rupee’s fall.
The rupee was under pressure throughout the session after the Fed announced a hawkish outlook.
And, while the Fed’s 75-basis-point rate was expected, the rate forecast surprised financial markets.
The so-called dot plots predicted that rates would reach 4.4% by the end of the year, representing a 125 basis point increase over the remaining two meetings in November and December.
Furthermore, policymakers expect rates to rise to 4.6% by the end of 2023.
