india
Indian Rupee
indian rupee falling
News
rupee
Why Indian rupee is falling agianst dollar?
In 1947, after the independence of India, 1 US$ was worth 1 Indian rupee, but in current scenario what has changed so much, that 1 US$ worth more than 73 Indian rupees, which is the lowest value of Indian rupee ever.
3 main reasons for this are
1) Increase in the price of crude oil- India only produce 20% of the oil of the total consumption, and import rest 80%, due to this oil comes as big expense in total import, for importing oil, India pays in US$ decreasing the stock of foreign currency in Indian foreign currency vault, hence decreasing the value of Indian rupee.
2) America and China trade war- America has imposed more taxes on India, China and on European Union, as a result of which, these countries have also increased import taxes on America, and in this price war the cost of importing oil has increased dramatically. Another reason for inflation is the price is that America is not letting India import oil from Iran, India wants to develop Chabahar port in Iran, but for this, India first needs to get out of America’s influence.
No comments