Indian rupee slumps to all-time low after Fed rate hike

The Indian rupee depreciated 51 paise, to an all-time low of 80.47 against the US dollar (21.92 versus the UAE dirham) in early trade on Thursday, after the US Federal Reserve's interest rate hike and its hawkish stance weighed on investor sentiments.

At the Indian interbank foreign exchange, the local currency was trading at 80.47 against the dollar – down 51 paise from its previous close.

The rupee opened at 80.27, and touched a record low of 80.47 a dollar in initial deals.

Forex traders said the strength of the American currency in the overseas market, a muted trend in the Indian equities, risk-off moods and firm crude oil prices weighed on the rupee.

The US Fed hiked interest rates by 75 basis points to 3.-3.25 per cent. It was the third straight 75 basis points hike. Fed chairman Jerome Powell in his press conference reiterated the Fed’s commitment to taming inflation.

• Fed's Powell cautions against 'prematurely' lowering rates