Rupee Vs US Dollar: Rupee Falls Below 81 Mark For The First Time Against US Dollar

In a major development the Indian Rupee witness a sharp drop on Friday and fell below the 81 mark for the first time to hit a new record low of 81.23. It is worth noting that the US Dollar index continue to stay above the 111 zone and the 2-year US bond yields surged above 4.1%.

Earlier on Thursday, September 22, Rupee depreciated 51 paise to an all-time low of 80.47 against the US dollar in early trade after the US Federal Reserve's interest rate hike and its hawkish stance weighed on investor sentiments.

At the interbank foreign exchange, the local currency was trading at 80.47 against the dollar, down 51 paise from its previous close. The rupee opened at 80.27 and touched a record low of 80.47 a dollar in initial deals, according to PTI report.

Forex traders said the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off moods and firm crude oil prices weighed on the local unit.

Forex traders said the US Fed's rate hike and escalation of geopolitical risk in Ukraine sapped risk appetite, as per a PTI report, which also added that the strength of the US currency in the foreign market, a muted trend in domestic equities, risk-off mood and firm crude oil prices weighed on the Rupee.