7 Reasons Why the Rupee is Falling

Indian Rupee has hit an all time low of  79.46 against the US Dollar. Since the start of the Russia Ukraine War the rupee has fallen by Rs. 5.36 against the US Dollar.

Brent Crude Oil prices hit a record 127.98 $.  ​ Before the start of the war price was 96.84 $.​​ Currently price is hovering around 106 $ ​

High Crude Oil Prices

Due to high demand India imported over 19.6 million tonnes of thermal coal and 5.4 million tonnes of coking coal in June 2022. It was higher by 30% compared to June 2021

Rising Coal Imports

Coal Price has risen from 239 $ / Ton pre war to a high of 432 $ / Ton. Currently Coal price is hovering around 400 $ / Ton

Rising Coal Prices

India’s Trade Deficit for the first 3 months of this financial year has widened to 70.25 bn $ from 30.42 bn $ a year ago​.

Trade Deficit

Post War FIIs have sold stocks worth Rs. 2 lakh crores. In the last 15 months they have sold stocks worth Rs. 4.1 lakh crores.

FII Selling

The dollar index is benchmark of the international value of the US Dollar. On 12th July the index rose to a 20 year high of 108.31

Rising Dollar Index

In the last 3 months the 10 Year US Treasury Yield has risen from 2.74% to a high of 3.44%. Currently it is being traded at 2.99%

Rising US Treasury Yields

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