12 hrs ago
Rupee Falls Past 96 Per Dollar After Fed Rate Hike
The rupee is India’s currency, and it became weaker against the US dollar.
On September 17, one dollar cost more than 96 rupees.
This happened after the US Federal Reserve raised interest rates.
Higher US rates can make the dollar more attractive to investors.
Oil prices also stayed above $100 per barrel, which added pressure.
Concerns about inflation and money leaving Indian investments made the situation harder.
Other central banks were also considering tighter policies.
An analyst said the rupee could weaken further toward 96.30-96.50 if it stays above 96.
The rupee fell past 96 per dollar on September 17, its first breach of that level since July.
The currency traded at 96.03 after closing the previous session at 95.95.
The Federal Reserve raised its benchmark interest rate by 25 basis points to 3.75%-4%.
Higher US rates, elevated crude prices, inflation concerns and foreign portfolio outflows increased pressure on the rupee.
Analyst Amit Pabari said a sustained move above 96 could push the rupee toward 96.30-96.50 in the near term.
- Who
- The Indian rupee, the US Federal Reserve, global investors and analyst Amit Pabari were involved.
- What
- The rupee breached 96 per dollar after the Federal Reserve raised interest rates and signalled possible further increases.
- Where
- In currency trading involving the Indian rupee and US dollar; the report also cites oil markets and tensions in West Asia.
- When
- September 17; the article does not specify the year.
- Why
- The dollar strengthened after the Fed rate hike, while high crude prices, inflation concerns and foreign portfolio outflows added pressure on the rupee.
Key facts
- Exchange rate
- The rupee traded at 96.03 per dollar, compared with a previous close of 95.95.
- Federal Reserve move
- The benchmark interest rate increased by 25 basis points to a range of 3.75%-4%.
- Oil price
- Brent crude eased to around $105.69 per barrel but remained above $100.
- Potential rupee levels
- Amit Pabari said a sustained move above 96 could lead to 96.30-96.50 in the near term.
- Additional pressure
- Inflation concerns, high crude prices and foreign portfolio outflows weighed on the currency.
- Possible Indian policy impact
- The Fed decision could strengthen expectations of an RBI rate hike at its October monetary policy meeting.
Quotes
Amit Pabari
Managing director at CR Forex Advisors
“The rupee has spent two sessions near Rs 96.00, and the global backdrop has now become less favourable. A sustained move above Rs 96.00 can open the way towards Rs 96.30 – Rs 96.50 in the near term,”
freepressjournal.in
Sources
Related news
Rupee Opens Lower as Fed Hike Strengthens Dollar
Rupee Falls Past 96 Against Dollar After Fed Hike
Indian Rupee Breaches 96 as Dollar Strengthens, Oil Stays High
Rupee Falls to 95.56 as Crude Prices and Dollar Rise
Rupee Slips Against Dollar Amid Oil and Tension
Rupee Opens Lower as Fed, Oil Risks Weigh
US Fed Raises Rates as RBI Faces Pressure to Follow
Wall Street Falls as Fed Signals Higher Rates Ahead
Japan Trade Deal Could Reshape U.S. Energy Investment
Rising US Bond Yields Threaten Global Growth and Budgets
