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What Caused the INR to Fall Below 70 vs. USD Last Week?

Professor of Financial Economics and Part-time Value Investor, Transfin.
Aug 20, 2018 11:30 AM 1 min read
Editorial

Falling Turkish Lira is being perceived as a signal for sluggish growth outlook across Emerging Markets incl India.

 

Consequently, foreign capital is being withdrawn from Indian investments, leading to sell-off of INR investments to buy USD-backed instruments.

 [Listen in from the beginning to learn more on India's recent currency woes]

 

This instills downward pressure on INR, as demand for INR declines. On flip side, USD strengthens on account of its higher demand.

 

That being said, there are other factors impacting INR like rising oil prices, US rate hike etc. Its impossible to quantify every macro factor affecting INR, while all being part contributors.