5 reason why rupee is falling

5 reason why rupee is falling

You have seen rupee falling from Rs. 44 to Rs. 65 in last 2 years. The fall of rupee will impact all Indians in a big way. Prices of basic commodity will increase which is going to affect your monthly budget. But what happen to rupee suddenly? Here are 5 reason why rupee is falling:

1. GDP growth rate of India is coming down. So, Investors don't trust rupee anymore.
2. FII are removing money from India which means demand of rupee is falling in international market.
3. Imports have increased.
4. US economy becoming stronger
5. This is not official, As elections are coming, it may happen that political parties are increasing the value of rupee so that they can convert their dollars into Rupees and get more money from it.

Whatever is the reason, the falling rupee is going to increase the fuel prices which inturn will increase the food prices which inturn will increase the inflation in the country. Foreg: If rice is becoming expensive, then the auto wala are going to increase their prices