Rupee falls sharply as US Fed rate rises to 5 pc

Mumbai, May 11: Rupee closed 15 paise lower at 45.08/09 per US dollar, as compared to the last close of 44.93/94, said a dealer in the forex market.

Earlier the rupee opened weaker by five paise at 44.98/00 per US dollar as compared to the last close of 44.93/94, said a dealer in the forex market.

The rupee weakened owing to a stronger US dollar marked by the US Federal rate hike by 25 basis points to five per cent yesterday.

It marked the 16th straight hike in the US Fed rate, the dealer added.

The rupee weakened further in the mid-morning trading session and traded at 45.0650/0750 per USD, the dealer added.

The stock market benchmark index BSE Sensex closed down by 177 points at 12,435 points , which also put pressure on the rupee.

Crude oil prices rose again and touched USD 72.45 per barrel which also had a negative impact on the rupee.

Reserve Bank of India (RBI) fixed the reference rate at 45.07 per US dollar which was 15 paise lower to yesterday's level.

The six-month forward premia ended higher at 1.22 per cent, from the previous close of 1.06 per cent.

The one-year forward premia ended flat at 1.21 per cent, from the previous close of 1.11 per cent.

The cross-currency closing rate for rupee against euro was 57.30 (57.39), which was nine paise down, for pound sterling it was 83.95 (83.59), 36 paise down and for the Japanese yen it was 40.50 (40.62), 12 paise lower from the previous close.

UNI