It explains Foreign Institutional Investors are pulling out of money from Indian share market, means, they are converting there rupee into dollars so the dollar demand has gone up and hence it is going up substantially, this is the main reason otherwise indian economy has not changed so much so that rupees has hit its all time low,
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The dollar has emerged as one of the main winners in the financial crisis.
As credit has dried up, banks have started to call in loans, which has meant borrowers having to buy up dollars to repay loans they owe in the currency.
This all of which means the price of the dollar is set to continue rising.
Many developing countries face mounting problems financing their debts as US banks are increasingly reluctant to lend dollars to banks abroad.
The scale of these loans is huge. International banks have extended about $2.5 trillion in foreign-currency loans to emerging markets.
Investors are switching to currencies and markets they perceive as safe - and that means the dollar.
The ICE futures exchange's US Dollar Index, which tracks the dollar against six other major currencies, has risen 21% since July, to its highest since October 2006.
The dollar level has soared to a two-and-a-half year high against the euro and r