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Indian Rupee Hits All-time Low, Closes At Rs 80 Against US Dollar

For the first time in history, the Indian rupee surpassed a psychologically significant level of 80 against the US dollar on Tuesday

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For the first time in history, the Indian rupee surpassed a psychologically significant level of 80 against the US dollar on Tuesday.

After closing at 79.97 per US dollar yesterday, the local currency opened today at 79.98. In early trade, the currency fell to an all-time low of 80.0175. 

For some time now, the rupee has suffered due to rising trade deficits, outflows of foreign portfolio investors, and high crude oil prices.  Compared to the US dollar, it has dropped nearly 7 per cent.

Finance Minister Nirmala Sitharaman said in Lok Sabha on 18 July that since 31 December 2014, there has been a decline of approximately 25 per cent in the rupee.

As noted by the finance minister, the Russian-Ukrainian war, a surge in oil prices, and global economic difficulties are the main reasons for the fall of the rupee.

 Sitharaman further said that a total of USD 14 billion was pulled out by foreign portfolio investors from Indian equity markets in 2022-23

Depreciation of the Indian rupee is primarily due to the outflow of foreign portfolio capital, she explained.

A record USD 26.18 billion merchandise trade deficit was recorded in June by India. The USD 24.3 billion deficit in trade was recorded in May. 

 Domestic unit suffered due to record-high trade deficit. The US dollar remained just above a one-week low against major currencies on Tuesday. 

The dollar index, which tracks the U.S. dollar against six currencies, was unchanged at 107.47. 


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