Rupee Continues To Slide, Drops Past 80 Per Dollar Mark For The First Time Ever
Indian currency rupee has today dropped below the psychologically important mark of 80 per US dollar for the first time ever, taking its year-to-date fall to about 7%.
After hovering around the 79 per dollar mark for the past few days, the Indian currency rupee today dropped below the crucial mark of 80 per US dollar for the first time ever, taking its year-to-date fall to about 7%.
The rupee hit a low of 80.0175 in early trade today, compared with the previous close of 79.9775 yesterday, an ET report mentioned.
Whereas as per Reuters, today morning the rupee was trading at 79.93/94 per dollar after hitting a record low of 80.05.
Hitting a new all-time low marks the seventh straight session of record lows for the Indian rupee, as weakness in domestic shares and currencies weighed, but dollar selling intervention by the central bank helped limit further losses.
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The value of the Indian rupee has depreciated by around 25% against the dollar since December 2014 and the recent fall is due to global factors like soaring crude oil prices and the Russia-Ukraine conflict, ANI reported Union Finance Minister Nirmala Sitharaman as saying on Monday.
"Currencies such as the British pound, the Japanese yen and the Euro have weakened more than the Indian rupee against the US dollar and therefore, the Indian rupee has strengthened against these currencies in 2022," the Finance Minister said.
PTI had reported yesterday that the rupee briefly touched an all-time low of the 80 per dollar mark but closed just below that key mark.
The Indian rupee's downfall comes amid an exodus of foreign investors, a global stampede into safe-haven US dollars on rising global recession risks, and widening trade and current account deficits.
As per an NDTV report, foreign fund outflows from India this year are more than the combined inflows of the last two years, with foreign investors reportedly pulling out a record $29 billion from Indian assets already this year.
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