Why the Rupee Fall
The market sentiment is the major player in the fall of the currency of any country. US Dollar is an international currency unlike Indian Rupee, so all imports are converted into USDs and for all exports India earns USDs. When there is favourable condition in the market, the sentiments support the home currency and vice versa. This is primary reason. However there are other reasons as well. In order to improve growth parameters, a country is required to spend money on the projects and sustainable endeavors. For this there are two options available for a nation, one it can print/mint currency and another one to collect the currency from the market. First option requires similar collateral for security, which is not the case for the second option. US federal government announced collecting currency (USDs) from other nations, which made USD a valuable currency following Demand-Supply law of economics. This caused the fall of rupee as well ...