There is a continuing decline in rupee against the dollar. The rupee slipped to 67.37 mark which is the lowest level of 15 months. The rupee closed 26 paise lower to hit 15-month lows of 67.13 against the dollar on sustained dollar demand from importers and banks amid sharp rise in the greenback overseas.
One of the main reasons for this fall is the rise in crude oil prices. In order to purchase crude oil, the dollar has to be paid. This is the biggest reason for the fall in rupees.
Increase in crude oil prices is one of the major reasons behind the fall in rupees. Crude oil prices have been steadily rising from some time. Recently, American President Donald Trump announced to break the nuclear deal with Iran. This led to increase the crude oil prices by about two and a half percent. Crude oil reached $ 77 a barrel. There is a possibility that crude oil prices can go up to $ 80 a barrel. There is a possibility that rupee could fall in the coming days.
Experts believe that besides the cost of crude oil, the American economy also has a profound effect on the stage of rupee. If the US economy will do good in the coming days and interest rates go up then it may effect a negative impact on rupee. The Indian rupee will slipped down more.
One reason for the rupees fall is that foreign investors are selling their shares and bonds. According to an estimate, foreign investors have pulled out $ 3.5 billion from the market. So we can say that the value of rupee will go down when investor pull out of the market.