Rupee Declined 13 Paise, Closes Below 80 Mark For The First Time Against Dollar

The rupee plunged to an all-time low of 80 to the dollar on Thursday, with investors still on edge over fears of a worldwide dollar shortage despite a rise in risk assets and a minor decline in crude oil prices.

The local currency began at 79.91 on the interbank foreign exchange market and then fell to a low of 80.05 to a dollar.

In the day trade, the rupee fluctuated between 79.89 to 80.05. At 80.05, the day's low, it eventually steadied, losing 13 paise from the previous close.

Following currency inflows and rumoured RBI intervention, the rupee strengthened on Tuesday from its record low of 80.05 to close 6 paise higher at 79.92 against the US dollar.

The currency has previously never exceeded 80 versus the dollar before recovering to close under that crucial psychological threshold the day before.

"Overall gains in crude in the last few days where Brent has risen again above USD 105 and lack of intervention from RBI has kept the rupee hovering around 80.00. Going ahead rupee will be seen in the range of 79.75-80.25," said Jateen Trivedi, VP - research analyst, LKP Securities.

He added, The rupee is broadly in a downtrend even after measures from the RBI on international payment gateways or import duty hikes on commodity products.