INR Depreciates Amid Dollar Strength On Hawkish Fed

3 Nov 2022 , 04:54 PM

Strength in dollar after the US Federal Reserve raised interest rates and maintained a hawkish stance weighed down the Indian rupee that depreciated by 10 paise to close at 82.90 (provisional) against the US dollar on Thursday. At the interbank foreign exchange market, the local unit opened at 82.87 and witnessed a high of 82.74 and a low of 82.92. It finally settled at 82.90 against the American currency, registering a fall of 10 paise over its last close of 82.80. The Federal Reserve on Wednesday announced its widely expected decision to raise interest rates by another 75 basis points. Citing efforts to achieve maximum employment and inflation at the rate of 2 percent over the longer run, the Fed announced its decision to raise the target range for the federal funds rate to 3.75 to 4 percent. The Fed also said that ongoing increases in rates will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. Meanwhile, European stocks fell sharply on Thursday after the U.S. Federal Reserve fully reaffirmed its commitment to fight inflation and signaled it was very premature to think about pausing the tightening cycle.Powered by Commodity Insights