There was a massive fall in the Indian rupee on Tuesday; it fell to its lowest level, i.e. 80 rupees per dollar, for the first time. On the previous day, it closed at Rs 79.97 per dollar. This year, the US dollar is up 7.5 per cent against the Indian rupee.
After seeing the continuous fall in the rupee for the last few days, there was a doubt that the rupee would cross $80. In the previous session, i.e. on Monday, the rupee had depreciated by 16 paise at the inter-bank foreign exchange market and closed at 79.98 per dollar.
Since December 2014, the rupee has registered a depreciation of 25 per cent. Giving written information about the RBI figures in the Lok Sabha, Finance Minister Nirmala Sitharaman said that on December 31, 2014, the rupee was 63.33 against the dollar, which came down to Rs 79.41 per dollar on July 11, 2022. She also cited the Russia-Ukraine conflict, rising crude oil prices and pressure on global economic conditions as the root cause of the fall in the Indian rupee.
However, by informing the lower house of Parliament, the government said that the Indian currency has strengthened against other major global currencies.
The government said, “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 continuous exit of foreign capital from the market and the rise in crude oil prices is the root cause of the fall in the rupee. Market analysts have expected the dollar-rupee price to be 79.79 and 80.20.