The rupee fell sharply by 90 paise on Thursday to close at an all-time low of 80.86 against the US dollar, PTI reported.
The development came a day after the US Federal Reserve raised its interest rate again by 75 basis points and warned of more hikes as it battles soaring prices, stoking fears of a recession.
“I think that shelter inflation is going to remain high for some time,” Federal Reserve Chair Jerome Powell said, according to CNBC. “We are looking for it to come down, but it is not exactly clear when that will happen. It may take some time. Hope for the best, plan for the worst.”
On Thursday, the rupee opened at 80.28, a 0.4% fall from its previous closing mark, Bloomberg reported.
Before the depreciation on Thursday, the domestic currency had hit 80.15 on August 29. This is the fifth time the rupee has breached the 80-mark this year.
Samir Lodha, the managing director at financial services firm QuantArt Market Solutions, told Reuters that the rupee could head towards the 82-mark in a couple of months if the Reserve Bank of India allows it to consistently trade above 80 against the US dollar.
Meanwhile, in the equity markets, the 30-share BSE Sensex closed at 59,119.72, falling 337.06 points from the previous closing mark. The broader 50-share NSE Nifty also lost 0.5% to finish trading at 17,629.80.
Shares of companies in the information technology and banking sector fared poorly, while the media and consumer goods sub-indices made gains.