Why is the Rupee Falling?
these are several major reasons behind the rupee's depreciation;
1.Global Geopolitical Tensions
Statements by Donald Trump regarding stronger actions against iran have increased tensions in the middle East .
This has created uncertaintly in globel markets ,pushing investors toward safar assets like US Dollar .
2.Surge in crude oil prices
Brent crude oil pricees have surged to around $114 per barrel.
Since India is a net oil importer ,higher oil prices increase doller demand weakenind the rupee.
3. Risk Around strait of Hormuz
oncerns over potential disruption in the strait of hormuz have raised fears about globel oil supply .this adds pressure on energy markets and currencies .
4.FPI/FII outflows
Foreign investors are comtinuosly pulling money pit of Indian markets .
When they exit ,they sell rupee and buy dollars ,causing further deprecition.
5.balance of payment pressure
According to citigroup ,india's Balance of payment ,may reach $50 billion in FY26.
This indicates higher dollar outflows comared to inflows.
Not just India -asia under pressure
It's not only the rupee ,several asian currencies have also weakened.;
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Philippine Peso
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Taiwan Dollar
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Thai Baht
In some cases these cuurencies have fallen even more than the rupe.e
