Question

why Indian rupees falling in India? explain.global and technical reasons with examples in 250 words​

Answer 1

Answer:

Just as it happened in 2008 during the Global Financial Crisis (GFC), the widespread economic uncertainty triggered by the latest COVID-19 outbreak has forced most investors and businesses across the world to seek to conserve that most crucial asset during times of crisis: cash and more specifically the U.S. dollar. In 2008, the dollar strengthened about 22% against the Euro as enterprises, especially in the world’s largest economy, hoarded the U.S. currency.

Since the start of the month, overseas investors have dumped Indian equities and debt on a scale not seen since the taper tantrum of 2013, when news that the U.S. was going to gradually wind down its GFC-triggered quantitative easing spurred an exodus out of emerging market assets. As on March 20, foreign institutional investors (FIIs) had sold a net ₹95,485 crore, or more than $12 billion, of shares and bonds. This outflow has coincided with the sharp fall in the equity market’s key gauge, the 30-stock S&P BSE Sensex, which has slumped 22% so far in March.