WHY RUPEE ( ₹ ) IS FALLING AGAINST DOLLAR ( $ )

Russia - Ukraine war

Due to Russia - Ukraine war prices of many things are rising like petrol , diesel , wheat , vegetable oil , gains , etc so Rupee is getting weak against Dollar .

Import and Export

Recently , India imported many pearls , jewelleries , mineral fuels , electric machinery , etc in USD so Dollar got strong and India exported a very less amount of products and as we all know that India's economy is highly depended on exports and even that less amount of products which India exported were sold in Dollar not in Rupee .

Low repo rate

In 2011 India's repo rate was 8% but today India's repo rate is only 4% .

Crude oil prices

India is a large importer of crude oil . India imports 83% crude oil and as we know that crude oil is always imported or exported in Dollars so from the price of crude oil is directly connected with Indian currency . So , if the price of crude oil rises India has to give that much Dollar from its foreign reserves to the country India is importing and the price of crude oil has raised 46.49% because countries which export crude oil are not suppling as the demand so the demand is not full so crude oil's prices has raised .

USA's changing policies

USA is changing its policies . Due to it , its central bank and federal reserve bank is not keeping the Dollar normally it is giving percentage ( % ) to people so Dollar is gathering in its reserves if it will have much Dollar it will effect other currencies and Rupee also .

What do you think about this article you can share your thoughts about this article on https://aayush21mzn.wixsite.com/website .