Re hits 81/$ for 1st time, forex kitty shrinks $97bn from peak

MUMBAI: The rupee breached the 81 level against the dollar for the first time on Friday as markets turned jittery after the Fed’s rate hike and escalation of hostilities in Ukraine. The RBI continued to defend the rupee even as reserves dipped to $546 billion, down by $5 billion during the week ended September 16, and $97 billion lower from their peak levels of $642 billion last year.
The greenback, which has been gaining against major currencies since the Fed hiked rates on Wednesday, rose further with the dollar index hitting a 20-year high. In the UK, biggest tax cuts since 1972 sent the pound and government bonds into a freefall. The pound slumped more than 3% against the dollar to levels last seen 37 years ago.
The rupee has ended the week down 1.6%, which is the worst weekly decline since April 9, 2021. The dollar was trading above 81 in early hours. However, the second half…

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