Rupee hit its all-time low and breached the psychological mark of 80 per dollar on Tuesday. Meanwhile, the dollar saw the strongest first half in over a decade, buoyed by recession fears and European woes. This brings concerning news to an economy that is gradually getting back on track after being battered by the Covid-19 pandemic-induced lockdowns.

On Monday, the Finance Ministry said at the Lok Sabha, Global factors such as the Russia-Ukraine conflict, soaring crude oil prices and tightening of global financial conditions are the major reasons for the weakening of the Indian rupee against the US dollar, further adding that global currencies such as the British pound, the Japanese yen and the Euro have weakened more than the Indian rupee indicating that the Indian rupee strengthened against these currencies in 2022.

Why the fall is not benefiting Indias exports and instead increasing the current account deficit (CAD)

long answer