Indian rupee plunges below 79-per-dollar mark

The main reasons for the rupee’s fall are the increase in crude oil prices, a strong dollar overseas, and continuous foreign capital outflows. Moreover, severe inflation, sudden and extended COVID-19 lockdowns in China, the monetary tightening campaign of major central banks, and supply chain disruptions due to the Russia-Ukraine war have all led to the sharp decline of the rupee, according to various media reports.

Local shares worth $28.4 billion have been sold, and bonds worth $2.3 billion have been dumped by foreign institutional investors so far in 2022. The drop of the Indian rupee has even led the RBI to sell dollars to minimise losses, the reports added.

Fibre2Fashion News Desk (NB)