News > Rupee hit new all-time low as dollar index rises 20-year high

Rupee hit new all-time low as dollar index rises 20-year high

The Indian rupee has depreciated to a record low since the morning trade after the dollar index surged to a 20-year high and 75 basis points rate hike by the US Fed, and hint at more rate hikes in the future. At the interbank foreign exchange market at 12.30 p.m., the rupee was trading at 80.71 against the dollar, which was sharply lower than its previous close.

With the US Fed increasing by 75 bps and hinting at more rate hikes in the future, we believe the dollar index can see a significant increase, implying that major market currencies, including INR, should be under pressure.