NEW DELHI: Rupee fell below 80 a dollar mark for the first time in the spot market as it touched 80.05 in the early trade on Tuesday. The local currency ended the day at 79.92.
Analysts believe that with the dollar strengthening ahead of the US Fed Reserve’s policy statement next week, the rupee saw selling in the early trade leading to the local currency falling below the 80 a dollar mark.
“Expectation is that the Fed could raise rates by another 75bps and maintain a hawkish stance. On the domestic front, the trade deficit continued to widen and that also is weighing on the rupee, Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
However, it gained later in the day due to buying from foreign institutional investors, who on Tuesday were net buyers of `976 crore of Indian equities and debts.