Why Indian Rupees Value Fall as Compare to Dollar

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Task Task. What is the current status of Indian currency ‘rupee’ against U.S dollar? Explain the probable causes of its fall and what steps can be taken by RBI to secure its respective status back. Assimilate all the points & write 1,500 words essay justifying your opinion about the same. Answer. In the last few months, the Indian currency faces several up downs Value of Indian currency fall as compare to U.S dollar but recently it start improving. The current status of Indian currency as compare to U.S dollar is 62.75 = $ 1. There are several causes behind its fall. First but very simple cause behind its falling value is that supply of dollar is less as compare to its demand. It is economic fact that when demand of anything is more as compare to its supply then it results in increasing its value so it is happened with dollar also. Secondly our import is more as compare to export. It means our outflows are more as compare to inflows. Thirdly the rate of inflation in India also affects the rate of rupees. This affects rupees indirect way. Fourthly, but important cause of falling rupees value is that now foreign investor lost their confident in Indian economy. Investor likes to invest their money in such country where they get huge profits. In India, economic growth rate is very slow. There is one political cause behind decreasing interest of investor. This is corruption which is happening at all level in India most importantly in politics, bureaucrats and the business people ‘s which helping in falling the rupee value. When black money is sent to Swiss banks through hawala route, a lot of dollars leave India. In this way billion of dollars moved out of country to Swiss banks and other tax
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