The Indian rupee fell against the US dollar on Thursday, closing at Rs 79.91 per dollar while it is depreciated by 18 paise to settle near 80 rupees. However, this fall in the value of a currency is not limited to the Indian rupee; rather, the currencies of many other countries are also falling against the strengthening of the US dollar.
As per the sources, recently, the Euro fell below the Dollar for the first time in nearly 20 years and the last time it fell below the US dollar was in the year, 2002.
The reasons behind the falling value of the Indian rupee:
The Ongoing Russia-Ukraine War: The long-running Russian-Ukrainian conflict has led Russia to limit its exports to the European Union and other countries of the world, as a result of which the value of their currencies, including the Indian rupee, has fallen down.
– India’s rising trade deficit along with the capital outflows have led to the deprivation of the value of rupee.
-Foreign investors have withdrawn huge amounts of money from India, which has severely affected the Indian foreign reserves, especially that of the dollar.
-The fall in the value of the euro below the dollar and its depreciation as a result of the Russia-Ukraine war has led to the Indian rupee losing its value.
-The growing economic tensions and trade war between the USA and China have further given a boost to the US dollar, and the demand for the US dollar has substantially risen.
According to the economists this fall in the value of the Indian rupee would add to the all-time high inflation rate in India.
By Mehak Sharma
