Currency traders said a firmer dollar against major overseas rivals and a fall in domestic stocks had dampened risk appetite.
Release Date – 11:00 AM, Thu – 12 December 22
Mumbai: The rupee depreciated by 15 paise to 82.64 against the dollar in early trade on Thursday after the Fed’s rate hike and its hawkish stance dented investor sentiment.
Currency traders said a firmer dollar against major overseas rivals and a fall in domestic stocks had dampened risk appetite.
In terms of interbank foreign exchange, the domestic unit opened sharply lower against the US dollar to 82.63, and then fell further to 82.64, down 15 paise from the previous close.
In the previous session on Wednesday, the rupee rose 11 paise to 82.49 against the dollar.
The Federal Reserve raised interest rates by 50 basis points on Wednesday as expected and signaled further rate hikes ahead to fight inflation. The US central bank raised interest rates to 4.25-4.50% to the highest level in 15 years.
Meanwhile, the U.S. dollar index , which measures the greenback’s strength against a basket of six currencies, rose 0.08% to 103.85.
Brent crude futures, the global oil benchmark, fell 0.69% to $82.13 a barrel.
On the domestic market, the 30-share BSE Sensex fell 120.64 points or 0.19 percent to 62,557.27. The broader NSE Nifty shed 52.30 points or 0.28 percent to 18,660.30.
Foreign institutional investors (FII) emerged as net buyers in the capital market on Wednesday, buying shares worth Rs 372.16 crore, according to exchange data.
