The Indian Rupee dropped to an all-time low against the dollar on Monday. The Federal Reserve’s restrictive stance has prolonged, promoting the RBI’s intervention. The Rupees concluded at 79.9625 per U.S. dollar, lowered from 79.8650 in the previous session. Before RBI Sold the dollar to boost the Rupee, the Local Currency had a record low drop of 80.12. Three traders confirmed the intervention of the Indian Central Bank to Reuters.

Arnob Biswas, head of Research at SMS GLocal Securities, concluded that RBI may not intervene significantly and would allow the Rupee to fall regardless of broad dollar strength. He also quoted, “The underlying tone for the rupee is weak based on global tightening phase,”

The dollar index elevated to its highest in 20 years because of enhanced short-term U.S yields and risk aversion. Fed Chair Jerome Powell has stated that restoring price stability would require maintaining a restrictive policy stance for some time, evidently pushing back against expectations that the U.S. central bank could cut rates later next year.

Furthermore, Powell acknowledged that diminishing inflation would sustain a period of below-trend growth, hurting the demand for risk assets. Though he reiterated that the size of a rate hike remains dependent on the data, his comment was seen as hawkish enough to interpret that there are chances of a point rate hike of 75 next month.
Asian Equities, including Indian equity, have slipped. The BSE closed down at 1.5% lowest in more than three weeks.
Oil prices hiked as OPEC (Organization of the Petroleum Exporting Countries) will cut the output support to strike a balance between expectations and concerns over the growth outlook.