Rupee falls 1% due to strong US jobs data and Fed rate hike fears.

Date – 06/02/2023 On Monday, the Indian Rupee experienced a depreciation of 89 paise, equating to a 1.08% decrease against the United States Dollar. This marked the largest single-day fall for the rupee in four months, fueled by unexpectedly robust US employment data. The data resulted in increased fears that the Federal Reserve would prolong rate hikes, putting additional downward pressure on the rupee's value. On Monday, the Indian Rupee concluded the day at a rate of 82.73 per United States Dollar, a decrease from the previous close of 81.84 per dollar. This represented the largest single-day depreciation since September 22, 2022. Consequently, the value of the rupee was nearly erased of all gains achieved against the dollar in the current year of 2023. The currency had concluded the last trading day of 2022 with a rate of 82.74 per US dollar. While the rupee took a beating on Monday, it did not suffer as much as some other Asian currencies such as the Thai Baht and the South Korean Won, which lost 2.1 per cent and 1.9 per cent, respectively, versus the US dollar. A rise in US interest rates leads to an appreciation of the US Dollar, as investors globally seek higher returns in the dominant economy. This, in turn, exerts downward pressure on emerging market currencies such as the Indian Rupee. At 3:30 PM IST on Monday, the US Dollar Index, which serves as a benchmark for determining the global value of the currency, was recorded at 103.29, in comparison to its value of 101.67 at the same time on Friday. Note – Every photo is symbolic (Photo Source: Google) All news and stories given on this website are reported by the reporter or taken from some source. Our endeavor is and will continue to provide you with the best information. The responsibility of this news and other things will be with the author (reporter) and the source.