Rupee downward slide expected after hawkish Fed stand, say experts

The rupee has been under depreciation pressure in the recent past

The rupee crossed 74 on Thursday, falling more than a percentage point, as the dollar registered a broad-based rally after the US Federal Reserve sounded hawkish in its meeting on Wednesday.

The partially convertible currency closed at 74.08 a dollar, which was also the lowest for the day.

It had closed at 73.3225 a dollar on Wednesday. Part of the reason for the sharp fall was that importers bought dollars in panic and stop loss was triggered, according to Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors.

The rupee fell 1.02 per cent against the dollar on Thursday, behind the region’s