• The Indian rupee hit an all-time low against the U.S. dollar, weakening past the 79 rupees to a dollar mark and selling as low as 79.05 against the dollar on Wednesday.
  • Since March this year, the U. S. Federal Reserve has been raising its benchmark interest rate causing investors to pull capital away from emerging markets such as India and back into the U. S. This, in turn, has put pressure on emerging market currencies which have depreciated significantly against the U. S. dollar so far this year.
  • The RBI has been trying to rein in domestic consumer price inflation, which hit a 95-month high of 7.8% in April, by raising rates and tightening liquidity.