![]() "The Indian rupee has been adversely affected mainly by the FIIs pulling out funds from the equity market, rising crude prices, the deteriorating trade balance and dollar strengthening," analysts at Emkay Wealth Management were quoted as saying by India Today.įoreign institutional investors have sold local shares worth $28.4 billion so far in 2022 and dumped bonds worth $2.3 billion. There’s nothing anyone can do to prevent this kind of depreciation, experts say. The rupee's performance against the dollar compared to other major currencies. ![]() India's currency (like a number of other currencies across the world) has gone down in value vis-a-vis the dollar for a slew of reasons including inflation, prolonged COVID-19 lockdowns in China, monetary tightening campaigns of the key central banks, and supply chain disruptions caused by the Russia-Ukraine war. Why is the rupee falling against the dollar? Two of these are US Treasuries (bond markets) and the greenback (in currency markets).Ĭurrently, with the world seeing a greater risk of recession in the US and across key economies, global investors are rushing to the above two safe assets, and hence, the US dollar has appreciated in value. As per Business Standard, the dollar’s strength comes amid the worry over slowing global economic growth, an energy crisis in Europe and aggressive rate hikes by the Federal Reserve.Īll these have sent investors rushing into the arms of the haven.Įxperts say that at times of global financial uncertainty, investors shy away from risky assets (read equities) to safer ones (bonds, fixed income assets).
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