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We are hearing in the news that Indian rupee is falling and its rate has reduced to 81 rupees per dollar. But in reality all the good currencies of world like Japanese yen, british pound, and Euro are also falling. In conclusion, Indian rupee is rising when compared to these currencies. So, we can say that all currencies are not falling, but US dollar is rising.
What is the reason of rising dollar? Due to high inflation in USA, the federal bank of USA is increasing interest rates. This will lead to more return if we deposit US dollar in bank. So, all over world, people are selling other currencies and buying US dollar.
Now due to this selling, more currencies are falling, and due to this fall, more people are buying dollar, thus dollar is rising.
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