Why Indian Rupee is Falling Against the US Dollar - Explained!

Here are some reasons that depict the fall of Rupee against the Dollar.

The rupee slumped to a fresh record low of 71 against the dollar for the first time ever by falling 26 paise on persistent demand for the US currency amid rising crude prices.

Crossing 69 to a dollar Mark.

After a brief lull, crude oil prices have started climbing rapidly to about 75$ a barrel.

The US is building pressure on its allies to stop buying oil from Iran by November 2017.

The Spike in oil prices has pulled down the rupee, by pushing up dollar demand.

Global Trade war fears triggered by the US and China's retaliatory import tariffs have also weakened the Rupee.

The Chinese yuan has fallen sharply in the last few sessions.

This has triggered a dollar flight from many emerging economies.

The Spurt in dollar outflow has pulled down most Asian currencies, including the rupee.

A weak rupee makes overseas travel costlier...

Imported goods like computers, mobile phones and crude oil may get costlier.

This may prompt oil companies to hike petrol and diesel prices too.

Costlier transport fuel will knock up prices of most goods and stoke inflation.

Elevated inflation may prompt RBI to raise lending rates.

It may also keep interest rates high to maintain India's attractiveness as a debt market and woo dollars.

High-interest rates may push up home loan EMIs.