Rupee closes at new all-time low ahead of Fed's interest rate decision

The rupee hit a fresh all-time low on Wednesday, ahead of the US Federal Reserve’s announcement on interest rates, closing at 78.06/$, compared to the previous close of 78.00/$.

On Monday, the rupee had breached the 78/$ mark and hit a record low of 78.28/$ intraday.

“Rupee consolidated in a narrow range ahead of the important FOMC policy statement that will be released on Wednesday,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

“Hawkish comments could continue to keep the dollar supported to lower levels. Major crosses remained under pressure following broad gains in the dollar,” he added.
 

The Indian unit and other Asian currencies came under pressure after Russia invaded Ukraine on February 24. 

The Reserve Bank of India has been aggressively intervening in the foreign exchange market by selling dollars, which prevented any sharp fall. The rupee has depreciated around 0.3 per cent against the dollar in the current financial year.

The US dollar index traded lower as traders braced for the US Fed meeting outcome.