India rupee hits record low against US dollar

Mumbai, October 20 (KMS): The Indian rupee slid to a record low for a second consecutive day on Thursday, weighed down by yet another jump in the U.S. dollar and Treasury yields on expectations that the Federal Reserve would continue with its aggressive monetary tightening.

Expectations of rate hikes in India have, on the other hand, been tempered since Friday, when the minutes of the latest meeting of the Reserve Bank of India’s monetary policy committee (MPC) indicated a softer guidance on policy rates.

The partially convertible rupee was trading at 83.16/17 per dollar, compared to its close of 83.02 on Wednesday. It tumbled 0.8% in the previous session, its worst single-day fall in nearly a month, due to dollar demand from two large state-owned corporates towards the end of the session.

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