💸 Why Is the Indian Rupee Falling Against the US Dollar? A Simple Explanation for Everyone By Lalan Choudhary | BPSC Rank 72 Recently, a friend innocently asked me on WhatsApp: “Why is the rupee falling so much against the dollar? Is India’s economy doing badly?” It’s a great question — and the short answer is no, this fall is not due to India's weak economy, but due to global factors, especially what's happening in the United States. In this post, let’s break it down in simple terms so that anyone can understand. 📉 What’s Causing the Rupee to Fall? If you look at the trend, you’ll notice the rupee has consistently depreciated against the US dollar over the past months and years. However, this is not because India is failing. Instead, it’s mainly because: Inflation is rising in the US. The US Federal Reserve is aggressively raising interest rates to control that inflation. Global investors are reacting by moving money to the US, causing the dollar to strengthen. In fact, the ...
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