Rupee slumps to new low as Fed hikes rates, signals longer tightening cycle

The rupee weakened sharply against the US dollar, hitting a fresh low, as the greenback surged following a 75-basis-point rate hike by the Federal Reserve. The dollar’s strength was also amplified by indications from the Fed that its rate hike cycle would continue for longer than earlier expected.

The rupee hit a new low of 80.47 versus the US dollar in the first few minutes of trade on Thursday. The domestic currency, which was trading at 80.36 per dollar at 09:15 am IST, had settled at 79.98 per dollar on Wednesday.

The previous intraday low for the rupee was 80.13