Rupee drops for the first time in early trading below the 81-mark versus the US dollar.

The rupee depreciated 44 paise and fell below the 81-mark against the US dollar . The rupee dropped by 83 paise on Thursday, the lowest level in nearly seven months .

MUMBAI (MUMBAI) – In early trade on Friday, the rupee depreciated 44 paise and fell below the 81-mark against the US dollar, weighed down by the strong American currency and a risk-off mood among investors.Forex traders said that the rise of geopolitical uncertainty in Ukraine and rate increases by the US Fed and the Bank of England in an attempt to control inflation stifled risk appetite.In addition, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods in the wake of an increase in geopolitical uncertainty in Ukraine weighed on the local unit.The rupee jumped to 81.08 against the greenback at the interbank foreign exchange and fell to 81.23, dropping 44 paise off its previous low.

The Bank of England increased its base rate by 50 basis points (bps) to a 14-year high of 2.25%.The Bank of Japan intervened in the FX market for the first time in 24 years to stem a falling Yen after maintaining rates at record lows, according to the IFA Global Research Academy, adding that the Swiss National Bank raised rates by a staggering 75 bps to 0.5 percent.The Federal Reserve of the United States has lowered interest rates by 75 basis points to 3-3.25 percent.RBI's absence from the spot market on Thursday was ostensible, said Anil Kumar Bhansali, Treasury Advisor, Chief of Treasury, Finrex Treasury Advisors.

In comparison, the dollar index, which measures the greenback's strength against a basket of six currencies, has increased 0.1 percent to 111.41.According to exchange reports, foreign institutional investors were net sellers in the capital market on Thursday when they offloaded shares worth Rs 2,509.55 crore.