Now we will try to give you the answer of questions like why indian currency is weak, why indian currency is falling down, why indian currency is depreciating?, why is rupee depreciating? and many more . So here are the Five reasons of decreasing value of Rupee.
1. Difference in the demand and supply of Rupee in currency market - Understanding currency market is not a rocket science, here only simple economic law works, more demand means more price for the product and less demand means less price. According to that law the demand of Rupee is decreasing hence the price of Rupee is also decreasing. Simple isn't.
4. Decreasing GDP growth reduce the investment opportunities in India - Before the Recession of 2008 India has maintained GDP growth rate of close to 9% for many years but things have changed now IIP numbers are lowering and even showing negative growth also the inflation numbers are scaring the growth but Govt is not able to bring any policies to restore the growth. Rising Fiscal deficit makes future more gloomy. Investors are not seeing their investment growing much here.
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