The Indian rupee hits the level of 80 against the US dollar on Tuesday. Accordingly, the currency was opened at 79.98 per US dollar against the previous close level of 79.97 per US dollar. However, surprisingly, the currency breached the record of 80.0175 in early trade.
Consequently, at the interbank foreign exchange market, the Indian currency opened at a level 80 and then at 80.05, recording a fall of 7 paise from the previous close.
Due to the rising inflation, the rupee was kept under pressure for a period of time. Consequently, the rupee was dropped almost to 7 per cent against the US dollar this year.
Since from December 31, 2014, the Indian rupee declined by almost 25 per cent in the foreign exchange market. The reasons like Russia-Ukraine conflict, rising inflation and tightening of global financial conditions let the Indian currency fall in the global market. Most of the foreign portfolio investors have withdrawn over 14 billion from Indian equity markets this year which is also one of the main reason for the deficit of Indian rupee in the global market.
