(Last Updated: December 1, 2018)

Why is the Value of Indian Rupee Falling against US Dollar? List Reasons

  • Looking at the Indian currency's latest moves, I was researching on the actual reasons behind it. Indian rupee has been sliding down against US dollars in the recent months. So, what are the basic reasons why the value of Indian rupee is falling? How is it possible to revive it and strengthen it?
    An interesting topic of discussion, would you like to share you opinions on the same. @prateek @Harleen @Wealthladder @kvijay12345

  • @ishu Indian rupee has been on a slippery slope in the past few months. The Indian currency crossed the 70 mark and just neared the 75 mark in the recent days.
    Some of the major reasons in the rupee fall against USD are:

    • Spike in the Oil prices: Rising Global Crude oil prices is surely a point of concern. India has to spend more dollars to meet its fuel needs, almost 80% of which is met through imports. This financial stress is a crucial factor in the falling of INR. The rise in crude oil prices has actually pulled down the rupee and pushed up dollar demand.

    • Strengthening Dollar: The USD in itself is strong currency and further getting stronger. This makes rupee look even more weaker against USD.

    • Global trade factors also impact the performance of rupee against dollar.
      The spurt in Dollar has weakened not only Indian currency, but various other Asian currencies as well.

  • The rise in Oil prices at global level is the major factor to influence the fall of Indian rupee against USD. There may be others, but this is the primary one.

  • The rising value of the US Dollar has certainly raised concerns in some of the countries. This article can make people aware of the real reasons.

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