Indian rupee and Turkish lira depreciate to record lows against the dollar

Accepted Wednesday solution The US Federal Reserve on the next increase of the key rate for this year by 0.75 percentage points has led to a significant strengthening of the dollar. Several currencies immediately updated record low rates against the dollar. This was also helped by the fact that the Fed made it clear that the rate will continue to rise and is unlikely to be cut before 2024.

So, the exchange rate of the Indian rupee against the dollar on Thursday fell to a new record low of 80.5 rupees per dollar. A day earlier, the dollar was worth 79.98 rupees. Turkish lira also updated a record low rate – on Thursday the dollar is worth 18.37 lira. The euro exchange rate against the dollar was the lowest in 20 years – $0.98 per euro.

In such circumstances, many Central Banks have taken measures to support national currencies. The Reserve Bank of India has been actively intervening in foreign exchange for several months to support the rupee. In July alone, he released $19 billion of his reserves to the market to keep the exchange rate at around 80 rupees to the dollar. On Thursday, the first foreign exchange intervention since 1998 was also carried out by the Bank of Japan, although the Fed’s decision had no effect on the yen. After this foreign exchange intervention, the yen rose 2% against the dollar to ¥141.1 per dollar.

Yana Rozhdestvenskaya