Due to significant dollar demand from importers amid rising crude oil prices, the Indian rupee fell 13 paise to close Wednesday below the 80 level for the first time.
The local currency started out at Rs79.91 to a dollar on the interbank foreign exchange market before falling to a low of Rs80.05.
In the day trade, the rupee fluctuated between Rs 79.89 and Rs 80.05. It eventually finished at Rs 80.05, the lowest point of the day, losing 13 paise from the previous closing.
Following foreign exchange inflows and suspected RBI intervention, the rupee strengthened on Tuesday from its record low of Rs80.05 to close 6 paise higher at Rs79.92 against the US dollar.
Significant dollar demand from oil importers, high crude oil prices, and worries over an expanding trade deficit, according to forex traders, dampened market morale. The dollar index, which measures how strong the dollar is relative to a basket of six different currencies, decreased 0.11 percent to 106.56.
The benchmark for world oil, Brent crude futures, dropped 1.73 percent to USD 105.49 a barrel.
On the Indian share market front, the BSE Sensex closed 629.91 points or 1.15 percent higher at 55,397.53 on the domestic equities market, while the larger NSE Nifty gained 180.30 points or 1.1 percent to 16,520.85.
According to exchange data, foreign institutional investors continued to be net purchasers on Tuesday, buying shares worth Rs976.40 crore.
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