Rupee falls 1% as robust US jobs data stokes Fed rate hike fears

Globally, investors fear that the US Fed will have to continue raising interest rates for longer than expected to cool labour markets and bring down inflation

The rupee weakened by 89 paise, or 1.08 per cent, vis-à-vis the US dollar on Monday, suffering its biggest single-day fall in four months on the back of unexpectedly strong US employment data, which stoked fears that the US Federal Reserve would hike rates for longer than anticipated.

The currency closed at 82.73 per dollar on Monday, versus 81.84 per dollar at the previous close. Monday’s fall marked the largest single-day depreciation since September 22, 2022. As a result, the rupee wiped out almost all the gains notched up against the dollar thus far in 2023. The currency had closed at