Rupee depreciates to 80 against US dollar

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IANS | 19 Jul, 2022
As predicted earlier, the Indian rupee on Tuesday crossed Rs 80 for a US dollar. The fall in rupee's value is owing to multiple factors like Russia-Ukraine war, outflow of foreign institutional investors and others, said experts.

Experts also said though the rupee has depreciated against the dollar, it has appreciated against other currencies.

Global risk aversion has led to rupee depreciation against the dollar; however, the decline is pretty tolerable. Even though rupee touched the psychological mark of 80 per dollar, rupee has indeed appreciated against the majority of leading currencies like Euro, GBP and Yen, said Aishvarya Dadheech, Fund Manager, Ambit Asset Management.

Dadheech said, forex reserve remains at healthy levels and recent measures by the Reserve Bank of India (RBI) will help overcome dollar shortage.

Fundamentals of Indian rupee are intact and the recent correction (due to global risk off sentiment) is an overreaction.

"We believe INR (Indian Rupee) will remain range bound and foreign investors will see this as an opportunity, and will be tempted to lock in at these levels," Dadheech added.

"The major reasons for the weakening of Indian Rupee against the US Dollar are global factors that include Russia-Ukraine war, rising crude oil prices, tightening of global liquidity and significant FII outflows," Arun Kumar, Head of Research, FundsIndia.