Rupee Breaches 96/USD for First Time in Two Months as Fed Hikes, RBI Steps In
The rupee broke past 96 per dollar on Thursday morning for the first time in over two months, after the US Federal Reserve raised rates by 25 basis points and signaled more tightening ahead. State-run banks were spotted selling dollars, likely on behalf of the RBI, and the currency pared its losses to trade with a small gain by mid-morning. At the interbank market, the rupee opened at 95.88, slid to 96.10 — down 19 paise from Wednesday's close — before recovering to 95.81, according to The Hindu. The breach of 96 is the first since July 24. Reuters, citing four traders, reported the RBI likely intervened on Thursday as the currency fell past the mark.
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