NEW DELHI: The Indian rupee declined to an all-time low of 80.05 against the US dollar amid foreign fund outflow and elevated oil and commodity prices.
Due to the current global economic downturn, the Indian currency has been losing its power.
India imports more than 80 per cent of its crude oil and the rise in crude prices are responsible for the depreciation of the rupee as the dollar persists in foreign capital outflows, experts opine.
The value of the Indian rupee decreases when demand for US dollars increases and vice versa. The supply chain is disrupted because of the Russia-Ukraine war, which is one of the big reasons for the steep depreciation of the rupee against the dollar by over six per cent so far this year, they said.
“Global factors such as a surge in crude oil prices and tight financial conditions, along with foreign portfolio investment outflows, are responsible for the fall in the exchange rate of the Indian rupee against the US dollar,” said Union finance minister Nirmala Sitharaman.
On Monday, the Central government admitted in the Parliament that the value of the Indian rupee against the dollar has fallen by Rs 16.08 (25.39 per cent) in the last eight years.
Since December 31, 2014, the Indian rupee has lost nearly 25 per cent of its value. The rupee’s value decreased from 63.33 to 79.41 versus the dollar from December 31, 2014, to July 11, 2022, the finance ministry informed the Parliament.