Rupee Dips To Record Low, Hits 80 Per Dollar For First Time Ever

Experts said the rupee depreciated against dollar due to rising crude prices and persistent foreign fund outflows weighed on the currency.

By Aalok Sensharma
Updated: Tue, 19 Jul 2022 10:06 AM IST
Minute Read
Rupee Dips To Record Low, Hits 80 Per Dollar For First Time Ever

The rupee on Tuesday hit an all-time low against US dollar and breached the 80 level mark for the first time in its history. The rupee had opened at 79.98 against dollar, but dipped to a record low of 80.0175 due to weakness in domestic shares and currencies weighed.

The Sensex on Tuesday opened at 54,403.85, down by 117.3 points, while the Nifty declined by 28.80 points to start the session at 16,249.70. Asian Paints, HCL Technologies, Bajaj Finserv, Infosys, Nestle, Larsen and Toubro, IndusInd Bank and Titan were the biggest laggards in the Sensex pack.

On Monday, the rupee had declined to 80 against the dollar, but ended the session 16 paise lower at 79.98. Experts said the rupee depreciated due to rising crude prices and persistent foreign fund outflows weighed on the currency.

"Rupee continued to remain under pressure after retracing on Friday. Market participants remained cautious ahead of the Fed policy statement that will be released next week," Gaurang Somaiya, Forex & Bullion Analyst at Motilal Oswal Financial Services, said.

"We expect the USD-INR (spot) to trade in the range of 79.79 and 80.20 in the short-term," Somaiya added.

'RUPEE HAS DEPRICIATED BY 25% Since 2014'

The value of the rupee has depreciated by around 25 per cent against dollar since December 2014 and the recent fall is due to global factors like soaring crude oil prices and the Russia-Ukraine conflict, Union Finance Minister Nirmala Sitharaman said on Monday.

One dollar was worth 63.33 Indian rupees on December 31, 2014. The rupee depreciated to 79.41 against dollar on July 11, 2022, as per data mentioned by the Finance Minister in a written reply to a question in the Lok Sabha.

In reply to a starred question in the Lok Sabha, Sitharaman said, "global factors such as the Russia-Ukraine conflict, soaring crude oil prices and tightening of global financial conditions are the major reasons for the weakening of the Indian Rupee against the US dollar."

However, she informed the lower house of the parliament that the Indian currency has strengthened against other major global currencies.

"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.

(With inputs from agencies)

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