What are the reasons for Decrease in Rupee value? Money flow is more or Cost of living is more
First comes repeated deficit budget and to get balance printing of 'Notes'. this in turn invited the second reason as 'More money supply in the market '. The second reason created demand for commodities that lead to price rise and thus the increase in cost of living as well as cost of wholesale index. Next comes the problem of 'balance of trade' problem.....GDP of other countries are decreasing but at some lower rate as ours and this leads to increase their currency value compared to our.....All this formed a cob-web and we are trapped there....unless we get escape from it this decrease in Rupee value will continue.