The Indian rupee slipped below the psychologically important level of 80 against the US dollar for the first time ever as high crude oil prices amid tighter global supplies boosted demands for the American currency.
At the interbank foreign exchange market, the partially convertible rupee slumped to a low of 80.0175 against a dollar in early trade against its previous day’s close at 79.9775.
The rupee has slipped below the psychologically significant mark of 80 against the US dollar for the first time ever.
The Indian currency has weakened by over 7 per cent so far this year. The rupee has depreciated by around 25 per cent against the US dollar since December 2014.
Finance Minister Nirmala Sitharaman said in the parliament on Monday that the main reasons for the depreciation in the value of rupee are global factors like the soaring crude oil prices and the Russia-Ukraine conflict.
“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,” the government said in written reply to a starred question in the Lok Sabha.
However, the government informed the lower house of 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 government said.