Reason of falling of Rupees against Dollar : Gov can’t do much

August 20, 2013

Indian Gov can’t do much to stop Rupees fall against dollar, because the fall in price more because of psychological reason.

People mainly foreigners are loosing faith in Indian economy. They want to take away there money from India, for taking away money from India, they need to purchase dollar by selling their Indian Rupees currency. Because they are more interested in taking away money from India in comparison to inverting their money in India, demand for dollar is high, that’s why Rupees price is falling.

The only thing Indian Government can do is that, they make the Indian Economy very efficient and trustworthy, so that foreigners can be insured to get profit by inverting in India, Once they believe Indian economy is strong they will start investing in India. Once they start putting their money in India, demand for India rupees will increase and price of Indian rupees will fall.

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