The rupee on Tuesday, 19 July, fell by seven paise to an all-time low of 80.05 against the US dollar in early trade.
The rupee was weighed down by outflows and high crude oil prices, said Sriram Iyer, a senior research analyst at Reliance Securities. He added that the lack of intervention from the Reserve Bank of India (RBI) could also weigh on sentiments, as per PTI.
During its closing, the rupee, however, rose by 2 paise and reached 79.96 (provisional) against US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.12 percent higher at 107.49.
Meanwhile, Brent crude futures, the global oil benchmark, fell 0.35 percent to $105.90 per barrel.
On the domestic equity market front, Sensex was trading 0.16 percent, or 86.4 points, lower at 54,434.75, while the broader NSE Nifty also fell 0.16 percent, or 26.75 points, to 16,251.75.
Value of Rupee Down by 25% Since 2014
On Monday, 18 July, the rupee declined to the low level of 80 against the US dollar in intra-day spot trading, before ending the session 16 paise lower at 79.98 amid a surge in crude oil prices and unrelenting foreign fund outflows.
The Indian rupee has declined by about 25 percent since 31 December 2014, the Lok Sabha was informed on Monday.
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, Finance Minister Nirmala Sitharaman said 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, she said.
(With inputs from PTI.)