Thread by @Starboy2079

Why INR is falling against US Dollar (Explained)

Though answer is very simple and I can finish this thread in one post but I want to explain basics so that you yourself can analyze and don't become victim of any propaganda so let me explain in detail and simple language

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This is Euro vs INR graph of last 1 month

Indian rupee is stable against Euro between 88 and 89

ok ?

This is British Pound vs Indian Rupees exchange rate of last 1 month

Here INR actually got stronger
1 month ago 1 GBP = Rs 107
Now 1 GBP = Rs 105

Chines Yuan vs INR

Here its also almost stable from last 1 month
1 month ago 1 Chinese Yuan = Rs 11.65
Today 1 Yuan = Rs 11.78

This is between Swiss Frank and INR

and you can google and check between INR and any global currency and you will find INR is stable against all currencies of the world

Except One.....

And that is US Dollar

This is graph of USD vs INR of last 1 month and you can observe that USD has continuously been going up against INR from last 1 month

So one conclusion we can draw here that -
"Rupee is not falling, Its actually US Dollar is flying like a rocket"

It can further be crosschecked by checking Dollar Index

US Dollar Index (DXY) is an index of value of US dollar relative to a basket of Six major foreign currencies

1 month ago DXY = 106.5
today = 109.9

So it confirms that USD is going high against all currencies of the world

This data explains performance of all global currencies against USD in 2024

USD went up 7.31% average against all currencies of world
Infect India was among top performing countries of the world against USD

INR fell only 2.8% against USD in 2024

Other side

Brazilian currency fell 21.6%
Russian Rubal fell 18.6%
Euro fell 6.2%
Even Chinese Yuan also fell 2.8%

Only British Pound and Mexican Peso performed better than INR against USD

So I think it will be wrong to target Modi govt for falling INR coz its INR not falling

This is Dollar Index of last 20 years

US Dollar was falling during 2004-14
It went down from 120 to 80 during 2004-14 and even at that time
In 2004
1 USD = Rs 43

In 2014
1 USD = Rs 60

That was actually Rupee falling coz it was falling even when USD was also falling

Just go on google and check INR vs GBP, INR vs EURO and against all major currencies during 2004-14 and you will find during that INR was falling against all countries

Today we can't say same
Its actually USD is flying

and why its flaying
Let me explain that

Reason is this man and his statements👇

Always remember if something is getting costly then it means demand of that item is increasing
Its basics

So if dollar is getting costly it means big investors all around buying the Dollar

Why ?
Answer is Fed's interest rate

People were expecting that in coming time Fed will steeply cut the interest rates

But since then Trump has won the elections, He is giving statements that
- He will increase manufacturing in USA
- He will put trade sanctions on other countries

So what will happen when Trump will increase manufacturing in USA and put trade sanctions on other countries ?

GDP of USA will increase
Business growth of US will increase
Jobs up
Inflation will increase

And if all this happens Fed will stop rate cutes

And that's the reason

People were expecting that fed will cut rates steeply
But now through his statements, Trump has given such indication that rate cuts wont be so steep

In my previous threads I already have explained whenever FED will increase rates, People will buy USD and USD will fly

All depends upon statements of Trumps

If today he just says he wont put trade sanctions, USD will stop flying
So this uncertainty will be there till 20th January after that whatever has to happen will happen

This time Republican have majority in senet and house

So statement of Trump are creating more stirs

I hope I have explained everything in detail and simple language.

There are many other issues where you can target Modi Govt but It will be wrong to target them on this issue because actually things are not in their hands

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