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Q.

What is the cause of constant fall in the value of rupee?

Tags: money, constant fall
Asked by Durgesh Bakshi, 26 May '12 10:55 pm
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Answers (8)

1.

Weak economy
Answered by Manju Sikri, 27 May '12 08:02 am

 
  
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2.

The primary cause is the increase in the value of imported items compared to that of the exported ones. Recession in production of items and the ever shooting rise of cost of imported oil is the main cause. The purchasing power of Rupee showing a downward trend. The operation of black money is another factor.
Answered by Arakuzha Ramachandran, 27 May '12 07:16 am

 
  
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3.

Due to Global Economic turbulations.
Answered by anantharaman, 26 May '12 11:42 pm

 
  
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4.

Devaluation of money is caused for following reason....

The main driver of rupee depreciation in the last three months has been the withdrawal of funds by foreign institutional investors (FIIs) from domestic economy. The rather pessimistic view of FIIs is being governed by global developments. FIIs have registered a net sales position of US $ 1,581 million, between August and November so far.
Answered by Pradipta pati, 26 May '12 11:13 pm

 
  
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5.

Rampant corruption in all spheres.
Answered by Dare Devil, 26 May '12 11:07 pm

 
  
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6.

The fall in the value is due to the domestic and international environmental reasons
Domestic reasons include:
imbalance in balance of payments, fiscal deficit, Govt policy inaction, decrease in exports, increased dependency and import of fossil fuels. increased buy of $ by the oil companies for payment towards import of crude.

International Environment: uncertain environment in the euro zone, slow recovery by the US economy.

In the next few quarters the global environment might improve but the policy inaction by the govt of India is some thing of a Concern.
Answered by Giri, 29 May '12 10:53 am

 
  
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7.

Because of appreciation in dollar rates...!
Answered by Dil Se, 26 May '12 11:09 pm

 
  
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8.

1. GAAR issue
2.S&P downgrade
3.Weak corporate earning
4. Huge fiscal deficit
5.inflation out of control
6.so many scams
Answered by Santonu Borpuzari, 26 May '12 10:59 pm

 
  
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