Rupee nosedives 33 paise against greenback after Fed rate hike

15/12/2016 14:05

The Indian rupee tumbled 34 paise against its US counterpart on Thursday amid sustained fund outflows by foreign funds and importers after the US Federal Reserve raised interest rates for the first time this year by 25 basis points to between 0.50 per cent and 0.75 per cent and also hinted of a brisker pace of rate rises in 2017. The weakness in Indian equity market also weighed on rupee movement.

At the Interbank Foreign Exchange Market, the local currency was trading down by 34 paise to 67.88 per dollar from a previous close of 67.54 per dollar.

The FOMC also forecast three rate increases in 2017, compared with two rate hikes projections made in September. The committee judged that a modest increase in the federal funds rate is appropriate in light of the solid progress we have seen toward our goals of maximum employment and 2 per cent inflation.

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