Indian rupee plunges against UAE currency in early trade

Indian rupee plunges against UAE currency in early trade

Higher than expected US CPI data has resulted in massive risk-off moves across assets; dollar strengthens across the board

Published: Wed 14 Sep 2022, 8:56 AM Last updated: Wed 14 Sep 2022, 9:09 AM

The Indian rupee depreciated by 43 paise to 79.60 against the US dollar (21.68 versus the UAE dirham) in opening trade on Wednesday, as higher-than-expected US inflation resulted in massive risk-off sentiments.

At the Indian interbank foreign exchange market, the rupee opened at 79.58 against the greenback, then fell to 79.60, registering a decline of 43 paise over its last close.

In initial deals, the rupee also touched 79.54 against the dollar.

On Tuesday, the rupee appreciated by 36 paise to close at an over one-month high of 79.17 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03 per cent to 109.77.

Global oil benchmark Brent crude futures fell 0.10 per cent to $92.91 per barrel.

The US August inflation came in higher than expected at 8.3 per cent year-on-year and 0.6 per cent month-on-month.

“The higher-than-expected data raised the prospect of more aggressive monetary policy tightening by the US Fed. Markets now expect the terminal Fed Funds rate to be 4.25 per cent.