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Rupee slides as US CPI data stokes speculation of 100 bps Fed hike

Higher US interest rates typically leads to a stronger dollar and reduces the appeal of emerging market assets for global investors

Photo: Brent Lewin/Bloomberg
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The rupee closed at 79.44 per US dollar as against 79.15 per US dollar on Tuesday (Photo: Brent Lewin/Bloomberg)

Bhaskar Dutta Mumbai
The rupee weakened sharply against the dollar on Wednesday as a higher-than-expected US inflation print led to anticipation of a steep rate hike by the Federal Reserve, leading to global strengthening of the greenback.
 
Government bonds also weakened as the US inflation data resulted in sharp rise in the country’s bond yields, reducing the appeal of fixed-income assets in emerging markets.

The rupee closed at 79.44 per US dollar as against 79.15 per US dollar on Tuesday. So far in 2022, the domestic currency has weakened 6.4 per cent against the dollar. Yield on the 10-year benchmark government bond climbed

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First Published: Sep 14 2022 | 9:15 PM IST

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