Rupee at over 1-month low on renewed Federal Reserve rate hike fears

Indian currency underperforms EM peers; analysts cite shrinking forward premia, widening CAD

The rupee plummeted against the dollar on Tuesday, shedding 1 per cent (82 paise), as stronger-than-expected economic data released in the US on Monday rekindled fears of aggressive Fed rate hikes.
 

Also, relentless dollar purchases by corporates and oil companies dragged the local currency lower. The rupee settled at 82.62 per dollar against 81.80 on Monday.
 

So far in 2022, the domestic currency has depreciated 10.0 per cent versus the dollar.
 

Tuesday’s move in the rupee marks the sharpest single-day slide since October 22, traders said.  
 

The US dollar index was at 105.26 at 3:30 pm IST versus 104.47 the