Rupee Hits Record Low, Ends At 80.86 Against Dollar

The rupee weakened to a record low against the U.S. dollar on Thursday, as Asian currencies declined on concerns over the pace and quantum of policy tightening of ahead. U.S. Federal Reserve.
 
The Indian currency fell by 0.89 paise against the American currency to 80.86 from its previous close of 79.97.

The domestic unit opened at 80.28 against the greenback at the interbank foreign market and performed in the range of 80.26 to 80.86 in today’s trading. 

It was the largest single-day fall for the local unit since Feb. 24. Traders were unable to confirm whether the central bank of India intervened in the spot market during the session, according to news agency Reuters.
 
According to some traders, RBI may have stepped in to arrest the rupee's decline, but the intervention was not too aggressive.
 
Meanwhile, traders at two state-run banks outright denied that RBI sold dollars to rein-in the rupee's fall.

During the session, the rupee remained under pressure after the Fed sprung a hawkish outlook.

Gautam Kumar, head of financial products at Kristal.AI, a Singapore-based digital private wealth management platform, said to a media house, "Given the current pro-dollar and weak equity sentiment, we expect RBI to focus on smoothening the move towards 81 over the next few sessions." 

The dollar index at one point rose to a fresh twenty-year high of 111.80 but came off as the Japanese yen climbed after authorities intervened in the foreign exchange market for the first time since 1998.