The Indian rupee on Thursday hit a record low against the US dollar.
The US central bank, the Federal Reserve, raised interest rates by 75 basis points (0.75 per cent) to a range of 3 to 3.25 per cent. The bank hiked interest rates by 0.75 per cent for the third time in a row.
Due to this and uncertainty in foreign politics over the Ukraine issue, there was a lot of softness in forex trading on Thursday.
Consequently, the rupee closed 93 paise lower at 80.89 against the US dollar in day’s trade.
Also, firming of the US currency in the overseas market, firming of domestic stocks and stable crude oil prices also affected the Indian rupee against the dollar.
In the interbank forex, the Indian rupee opened at 80.27 against the dollar in the morning. In the intervening period, it fell to an all-time low of 80.95.
The rupee finally closed at 80.89, down 93 paise from Wednesday’s level of 79.96. This is the biggest fall in the value of the rupee against the dollar.