On Monday, the rupee witnessed a historic fall against the dollar. This is an all-time low for the rupee against the dollar. The signal given by the head of the US Fed is said to have led to a huge fall in the rupee.
US Fed chief Jerome Powell said at a meeting with central bankers on Friday that it is not possible to cut interest rates to control inflation. After these signals, the value of the rupee fell further against the dollar. The price of one dollar is now 80.11 rupees. In the previous closing, one dollar was priced at Rs 79.97.
Earlier last month, the rupee broke all previous records against the dollar. At that time, one dollar was worth 80.0650 rupees. Today’s decline also broke the previous month’s record. Stock market indices also witnessed a sharp decline in the opening session on Monday.
“The market expected the US Fed to remain positive. But the signal from them is not positive for people and business. Such drastic steps to reduce inflation were not expected,” said VK Vijayakumar of Geojit Financial Services. A depreciating rupee can also impact investments through APIs. Investments by FPIs have increased in the last few weeks.