Guwahati: The Indian Rupee on Tuesday fell to a record low against the US dollar, falling below 80 for the first time ever.
The collapse may be considerably greater, betting in favour of a free fall afterward increased, as the rupee sank past the rate of 77 to the dollar.
The rupee has now experienced record lows for seven sessions in a row.
The Nifty was at 16,252.95 points this morning, down 25.55 points or 0.16 percent, while the Sensex was at 54,389.79 points, down 131.36 points or 0.24 percent.
According to the National Stock Exchange data, 29 were in the green and the rest in the red among the Nifty 50 stocks.
The value of the rupee has been steadily declining, which has been detrimental to domestic stocks. Foreign investors often experience unfavourable effects from rupee depreciation.
According to stockbroker Prithvi Finmart, “We expect the rupee to remain volatile this week and could hold its critical support level of 80.5500 on a closing basis.”
The rupee has been severely damaged by a flight of foreign investors, expanding trade and current account deficits, and a global stampede towards safe-haven US dollars as the likelihood of a global recession has increased.
Foreign investors have pulled a record $29 billion out of Indian assets this year, surpassing the aggregate inflows of the previous two years’ foreign funds.