Rupee Marks Its Worst Week In Five As US Dollar Touches New Record High

Bloomberg data showed the rupee settling at Rs 79.45 against the US Dollar compared to Thursday’s close of 79.70

The Indian Rupee on Friday marked its worst week in five as the US Dollar soared to a new record high in anticipation of a hefty rate hike by the Federal Reserve and both the IMF and World Bank, signalling slowing economic growth and an imminent global recession.

Bloomberg data showed the rupee settling at Rs 79.45 against the US Dollar compared to Thursday’s close of 79.70. As per Bloomberg data, the rupee traded between 79.70 and 79.86 during the day. News agency Reuters reported that the rupee declined 0.2 per cent, posting its most significant loss since the week ended 12 August. Demand for the Dollar remains robust due to anticipation of a hawkish Fed to tame inflation.

The dollar’s strength also pushed China’s offshore Yuan past the psychologically critical 7-per-dollar level for the first time in nearly two years. The British Pound was also pushed to a 37-year low against the US Dollar. The outlook for the health of the UK’s economy looked bleak as retail sales decreased more than anticipated last month.