Ahead of the Fed's interest rate decision, the rupee closes at a fresh all-time low

16 Jun 2022 , 09:20 AM

The rupee struck a new all-time low on Wednesday, ending at 78.06/$, compared to the previous close of 78.00/$, ahead of the US Federal Reserve’s decision on interest rates.

The rupee broke through the 78/$ barrier on Monday, hitting a new intraday low of 78.28/$. “The rupee has stabilized in a narrow range ahead of Wednesday’s critical FOMC policy statement,” said Gaurang Somaiya, Forex & Bullion Analyst at Motilal Oswal Financial Services.

“Hawkish remarks might keep the currency sustained at current levels.” Following broad dollar advances, major crosses remained under pressure,” he continued.

Following Russia’s invasion of Ukraine on February 24, the Indian rupee and other Asian currencies came under pressure.

The Reserve Bank of India has been intervening actively in the foreign currency market by selling dollars, preventing a dramatic drop. In the current fiscal year, the rupee has lost almost 0.3 percent of its value versus the dollar. The US dollar index fell as traders awaited the results of the US Federal Reserve meeting.