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Published on 23/09/2022 3:29:46 P | Source: ANI

Indian stocks slump on global monetary policy tightening; Rupee at new low

Posted in Business Videos| #Stock Market

Indian stocks extended their losses from the previous session and declined further on Friday morning following the latest policy rates hike by the US Federal Reserve in its fight against high inflation. At 10.05 am, Sensex and Nifty traded in the 0.8-0.9 per cent range. Further tightening of monetary policy in the US essentially means that investors will have a tendency to move to the US markets for better and stable returns. Meanwhile, Rupee tasted yet another lifetime low on Friday morning after the US dollar index strengthened to a two-decade high this week, on hopes that demand for safe-haven currency such as the dollar would pick up. This morning, the Rupee opened 25 paise lower to touch a record low of 81.09 versus the US dollar, against Thursday's close of 80.86. Yesterday's depreciation was the biggest single-day fall for the rupee since February 24. The US Federal Reserve had raised the repo rate by 75 basis points -- which is the third consecutive hike of the same magnitude, in line with expectations. The Fed also hinted that more rate hikes were coming and that these rates would stay elevated until 2024. Consumer inflation in the US though declined marginally in August to 8.3 per cent from 8.5 per cent in July but is way above the 2 per cent goal.