The Indian Rupee hit a lifetime low level of 80.43 on Thursday after US Fed’s decision to hike interest rate by 75 basis points yet again. The domestic currency opened at a record low of 80.2850 per US dollar, down from the previous close of 79.97. The Fed on Wednesday raised rates by 75 bps, in line with expectations. More importantly, it hinted that more hikes were coming and that rates would stay elevated until 2024. The 10-year bond yield rose sharply by 5 bps to 7.289% from its Wednesday’s close of 7.234%. Bond yield and currency prices move in opposite directions.
Following Fed’s hawkish commentary, the dollar index was trading above 111 levels. Due to this reason, rupee was trading lower. Other Asian currencies were also under pressure after the Fed raised rates and provided a more hawkish outlook for its future rate path. Among Asian peers, South Korean won was down 1%, Philippines peso fell 0.73%, China Renminbi…
