Rupee Plunges To New Low As US Fed Hikes Interest Rates

The Indian rupee fell dropped to a historic low as the dollar strengthened after the US Federal Reserve hikes interest rates by 75 bps Federal.

The rupee opened 0.4% lower over its previous close at 80.28, a record low for the currency. Prior to this, the low was 80.12 to the dollar, hit on Aug. 29.

The Fed's move on Wednesday boosted its benchmark short-term rate, which affects many consumer and business loans, to a range of 3 percent to 3.25 percent, the highest level since early 2008.

Meanwhile, the Sensex opened lower in line with other Asian Markets. The benchmark was last seen trading lower by 200 points, after opening almost 300 points lower. Markets are expected to be volatile as rising interest rates pose serious concerns for the market.