The US dollar’s steady advance against other major currencies today caused the Indian rupee to set a record low for a fourth straight session. Foreign institutional investors kept selling off their Indian stock holdings, which put more pressure on the rupee.
Today, the rupee struck a new low of 79.74, breaking through its previous low of 79.66 from the previous session. On Wednesday, the local currency fell to a record low against the US dollar, closing at 79.62.
Today’s gains in the US dollar came as a result of higher-than-anticipated US inflation figures that raised the prospect of a quicker tightening of monetary policy by the Federal Reserve. Growing concerns about a recession have also increased the US dollar’s appeal as a safe haven currency.
According to data released on Wednesday, the US consumer price index increased to a 41-year high of 9.1% in June as a result of supply chain constraints partially brought on by the conflict in the Ukraine and rising demand. Raphael Bostic, president of the Atlanta Fed, will speak at a gathering on Friday.
Some market watchers believe that the Fed may increase borrowing prices by a full percentage point at its upcoming meeting this month after the release of US inflation statistics. Releasing a little bit. The world’s largest economy appeared to be enduring the rate hikes, according to Friday’s US jobs statistics, which gave the Fed more leeway for future increases.