After US Fed's hike, RBI action in the next two days to decide rupee's fate

The rupee has been one of the best performing currencies and the RBI will be setting the goal post by its actions

The rupee at 80 may be transient if one goes by recent history. Every time the rupee has crossed this mark there has been intervention to steady the volatility. The currency market today is being driven by one overwhelming feature - the dollar-euro relation - which has tended to put relentless pressure on all currencies. The US Federal Reserve has increased rates by 75 bps and the indication is that the rate will go past 4 per cent to 4.4 per cent by the end of the year. This means that the dollar will continue to strengthen and collateral effects