INR endures heavy losses after breaking above 88 per US dollar

Indian Rupee slumped today amid a sharp upturn in the US dollar index. Some selling pressure in local equities also weighed on sentiments and dragged INR towards record low against the US currency. INR currently quotes at 88.66 per US dollar, down 44 paise on the day. The US dollar index soared yesterday, breaking above 99 mark and hit its two-week high after the US Fed chair Jerome Powell indicated that it is not a certainty that Fed will deliver another rate cut in next meeting December. Fed did cut its benchmark interest rate by 25 basis points to 3.75%4.00%, marking its second consecutive cut this year yesterday though this action seemed to have already been factored in the market. Meanwhile, the NIFTY50 index has eased around half a percent, coming off a one-year high. On NSE, USD/INR futures are quoting at 88.69, up 0.39% on the day after nearing 88.80 mark earlier.

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