Here is Reason: Why is the rupee falling so much?

The value of The Rupee is falling down more and more. 

Let's talk about what was the reason behind?

What is the Current status of Rupee?

This is the lowest level since July 18 (79.90rs =1 $)

Next month will be even weaker, and may even touch the benchmark of Rs 82.

The Indian rupee is falling this year and has fallen 6% so far in 2022.

About a 2% decline has been seen in June itself.

But the question arises,

Why is the Rupee falling so much?

Russia Ukraine war have been started from 4 months, but which has been no result yet.

due to war, Oil increased  30% and more than 80% of the imports by India and from which India is increasing the import bill.

Every country in the world has a different currency, Most of the trade in the world is done in currency dollars, so the demand for dollars in business is always increasing.

But when these rupee rates will work against the dollar, then there will be a loss in business.

The place where a currency is traded is called the foreign exchange market, money market.

This market does not remain the same, changes continue in it. it depends on the demand and supply of money.

This is the thing that is being priced on the rupee.

Bankmark interest has seen an increase by the US Fiddler Reserve since March.

Due to this people are withdrawing money from Indian Bank and investing in American Bank.

The Indian public has pulled out $32 billion from the equity market in the last One year.

When someone wants to sell dollars and currency, they will go to the bank.

Foreigners can come to India and get their currency exchanged in the bank.

Government gives all these licenses, Reserve Bank of India secures foreign exchange.

Crude oil, gas, petrol etc. are imported from abroad.

Electronics are bought at US currency dealers

that why, Indians need to use dollar currency But when the rupee falls against the dollar, inflation will increase.

Which will have an impact on the economic condition of the country.

Let's see the chart from 2003 to 2022,

rupee 80 crossed
Image from twitter (moneycontrol)

Before 1990, the situation was somewhat different, before liberalization in India the rupee was fixed in some other way. Situation before liberalization, Prior to 1990 "Fixed Exchange Rate System" was used in India. The exchange rate was fixed by the government, in which it was fixed by the RBI in India. The core of a currency is settled on the basis of a more stable currency in a predetermined ratio.