Business & Economy

Indian rupee slips below 80 units per dollar mark for the first time

New Delhi, Jul 19 (EFE).- The Indian rupee on Tuesday touched a record low by dropping to 80.05 units per United States dollar, breaching a symbolic barrier that it had been approaching for weeks as its depreciation has touched record levels, driven by rising oil prices.

“The Rupee breached the psychological 80 mark in opening trade before recovering even as the prices of crude oil settled higher by over $5 per barrel on Monday,” Indian consultancy EForex India said in its analysis.

The Indian currency has kept plummeting to new all-time lows over the past few weeks, as part of a downward spiral spanning nearly four years.

Since the beginning of this year, the rupee has lost nearly 7 percent of its value compared to the dollar.

The Ukraine conflict, which has led to a sharp rise in oil prices and caused instability in global markets, has been the biggest reason behind the slump.

However, in recent weeks, the rupee’s devaluation has mainly been driven by a bullish dollar, as investors have fled to the safety of the greenback amid the possibility of a global recession.

On Tuesday, EForex India highlighted US President Joe Biden’s “failure” to convince the top producers of oil in the Organization of the Petroleum Exporting Countries to boost supplies, as one of the reason’s behind the latest slide.

Financial analysts have suggested that continued depreciation could take the Indian rupee below the 81-units per dollar mark before the end of this year. EFE


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