Why is Rupee falling Against Dollar: Reasons, Affect.
The rupee opened at 75.61 against the US dollar, but lost ground and closed at 75.72, registering a fall of 6 paise over its previous close. It had settled at 75.66 against the greenback on Tuesday.
India is world’s 2nd largest gold consumer and 2nd largest import of India is gold only after crude oil.With festive season round the corner, there will be a huge demand of Gold, leading to further imports, it will put more pressure on Indian Rupee against the US Dollar, leading to further decline.
The rupee nosedived 113 paise or 1.62 per cent against the US dollar and breached the 70-mark on Monday, news agency Press Trust of India (PTI) reported. The fall in rupee's value marked the.
The dollar scaled new peak on June 26 after it hit Rs164 mark in the open market but soon started falling against the rupee. The rupee has appreciated by 5.67 per cent against the dollar since.
The rupee appreciated 67 paise to 72 against the US dollar at the interbank foreign exchange Wednesday after crude prices fell to a one-year low in the global market, easing concerns over expanding.
Logging its first fall in eight sessions, the Indian rupee on Monday plunged by 68 paise to 71.60 against the US dollar amid concerns over soaring crude prices following drone attacks on Saudi.
The rupee on Thursday opened 5 paise higher at 71.38 against the US dollar amid slide in crude oil prices and flat Asian equities. The domestic currency on Wednesday recovered from initial losses to settle 11 paise higher at 71.43, tracking gains in domestic equity markets and softening crude oil prices.