Unfortunately, our Indian rupees is Asia’s most performing currency and simply unable to break its fall.
Our Indian rupees is mainly influenced by many many markets. The fall of the growth of any currency Mili depends upon its trade, import-export, interest rate and a lot of things. Once upon there was a time when one US dollar was equal to one INR. the main reasons for this downfall is because of import and export but along with import and export, there are a lot of reasons that are responsible for such downfall.
Here is the list of all those reasons that led our Indian currency down
1. Passive RBI
Normally whenever the value of the rupee false Central Bank sells dollars from the reserves to rescue this downfall. But on the other hand reserve Bank of India RBI is not perform even a single chance for their domestic currency. Even the chief economist of HDFC Bank which is India’s biggest private lender bank said that the intensity of RBI intervention has dissipated. Wilder the complete lack of communication from the reserve bank of India comment from an official from government and semi-government agency give the impression that they support the fall in the value of Indian currency due to their interest in competitiveness.
2. Global tensions
Over a period of time, the price of oil in India has gone down first due to oversupply and then contraction of demand by China which led to an argument between all exporting countries and has increased the global tensions over oil which lead to a lot of foreign investors taking a safer position and exiting the one which is risky.
3. Overflow of foreign money
This point at related to the second point. A lot of foreign investors are withdrawing their money from the Indian market due to their concern that there is an overgrowth in emerging market economies which is an economy that is in process of becoming a developed economy. So currently in this face markets are drastically down due to FIIs selling their holdings and depreciating the Indian rupee.
4. Crude oil and the US
Us is the largest importers of crude oil in the world full stop when the prices of crude oil are down, United state is finding its bill for oil import in a reduced state which is making the US dollar stronger. This leads to a relative rupee to dollar depreciation as the dollar is getting stronger
5. Boost exports
When there is a depreciation in the rupee there is a rise in demand for Indian exports. To overcome this again reserve Bank of India is not in a bid for intervening in the foreign exchange market.
