The Indian rupee fell to a record low today vs US after the US Federal Reserve hinted at more aggressive rate hikes to tame inflation. The rupee opened at a record low of 80.2850 per U.S. dollar and depreciated further to 80.58 per USD, as compared to 79.9750 in the previous session. Overnight, the after the Federal Reserve unveiled a third straight jumbo interest rate hike, said more were in the pipeline, and warned the battle against inflation was straining the US economy.
The dollar index was up nearly 1% to a new two-decade high of 111.60. The Fed’s new projections showed rates peaking at 4.6% next year, with no cuts until 2024.