Rupee slumps to 64.81 as Fed signals another rate hike

Chennai, Sept 21:  

The rupee slumped to 64.81 as the dollar strengthened overseas following the outcome of the Fed meet.

The US currency strengthened as expectations of rate hike by the US Federal Reserve grew stronger. The US Federal Reserve had left interest rates unchanged on Wednesday but signaled it still expects one more increase by the end of the year despite recent weak inflation readings.

The domestic currency opened weak by 25 paise at 64.52 at the Interbank Foreign Exchange market today. The rupee broke below a key short-term support level of 64.30 and fell to a low of 64.81. It has recovered from this low and was trading at 64.75 at 2.35 pm local time..

The local currency hovered in a range of 64.81 and 64.44 in the afternoon trade. Yesterday, the rupee had logged its first gain in three sessions by rising 6 paise to 64.27 against the US currency owing to fresh dollar unwinding by exporters.

Meanwhile, the benchmark BSE Sensex was trading down by 22.7 points or 0.07 per cent at 32,377.81 on the BSE.

(This article was published on September 21, 2017)

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