Major Reasons Why Indian Rupee Is Falling Against US Dollar

Tap to Read ➤ The Indian rupee has dropped to around 77.4650 against the US dollar, which is a concerning situation. The American currency is strengthening overseas and foreign fund outflow is worrying. Kuntala Sarkar

Fall of INR Globally, equity investors are showing lesser interest in the commodities and equities and taking shelter under government bonds. The US is leading in this trend after the interest rate hike.

FPI Outflow A significant amount of FPI outflows from Indian stock markets is a key reason, INR. is falling against the US dollar. Globally investors are more interested in Dollar and govt. bonds now.

Crude oil price rise Anand Rathi, a renowned brokerage firm has additionally mentioned the elevated crude oil rates and the rising domestic inflation level as two major reasons behind this fall.

Russia-Ukraine War As the Russia-Ukraine geopolitical tensions started, the US Dollar index also hit fresh highs. Triggered by global economic uncertainties, investors focussed on the US dollar.

Employment in USA US non-farm payrolls gained by 428,000 last month, while unemployment rate stood at 3.60%. Soon, the US CPI inflation data will be published to decide the upcoming roadmap.

Economic Growth INR. is struggling to increase its strength back. With right monetary policy and economic growth, INR can regain its position. However, global economic conditions will matter on this.