The Indian rupee fell to a new record low against the US dollar on Thursday, echoing losses across Asian rivals.

The drop in global and local shares following the US inflation report pointed at more aggressive Fed tightening amid deteriorating investor confidence hit down by global economic slowdown.

The currency began trading at 77.56 per dollar and fell to a new low of 77.58 per dollar. The local currency was trading at 77.57 per dollar at 9.30 a.m., down 0.4 percent from its previous close.

The South Korean won dropped 1.05 percent, the Taiwan dollar 0.5 percent, the Chinese Renminbi 0.41 percent, the Philippine Peso 0.25 percent, and the Malaysian ringgit and Thai Baht each declined 0.2 percent.

Last month, the US consumer price index increased by 8.3% over the previous month. This was lower than the 8.5 percent increase in March, which was the largest since 1981. Following similar hikes in June and July, analysts now expect the Federal Reserve to raise rates by half a point in September.

Investors were particularly concerned about the Russia-Ukraine conflict and China’s COVID restrictions.

Traders are now waiting for India’s consumer price inflation and industrial production index data, which will be released after 5.30 p.m. today. According to Bloomberg, the CPI will be 7.42 percent in April, up from 6.95 percent the previous month. IIP will be 1.3 percent in March, down from 1.7 percent the previous month.

In response to increased oil costs and slower global growth, Morgan Stanley has lowered India’s GDP growth predictions to 7.6% for FY2023 and 6.7 percent for FY2024.

The dollar index, which gauges the strength of the US currency versus other major currencies, was at 104, up 0.1 percent from its previous closing of 103.85.