Why is the Indian Rupee Falling?
The Indian rupee has dropped to its lowest level against the US dollar, now at 85.71.
In the last three months, the rupee has weakened by more than Rs. 1.50 compared to the US dollar.
One key reason for this is the rising demand for the US dollar. The US Federal Reserve has reduced interest rates three times, totaling a 100 basis points cut.
Lower interest rates are leading many American investors to sell US Treasury bonds and invest in the US stock market instead, increasing the demand for dollars.
