Why is Indian Rupee getting weaker and weaker?

simple basic of economics ... doller in demand .. fall of international trade.. recession in us leads to disinvestment (fii s pulling out their investment in india) exporters are very few orders from outside countries so there is no matter of converting dollar into rupee thereby decreasing demand for rupee.

another theory :-

That's not why the FII are pulling out. If US had to pull out, they would had pulled long ago in 2008, when there was real crisis. Currently the dollar is getting stronger because of safe haven. All economies are slowing down with some big crisis in some countries, earlier the US dollar was down because the save haven was euro. The rupee will decline until the euro crisis is over. Its not a actually rupee which is declining, US dollar has appreciate, Another thing the major India Import (crude oil, gold) are done in US dollar, as the dollar gets stronger , it gets expensive for India, and shell out lots of dollars.

main thing is UPA lacks in forward thinking .. use short cut for revenue deficit (raising price for essential commodities.. instant) for the sake of vote bank presenting populist budget (no one is profited by this)

MAY BE GO SWADESHI IS ONLY HOPE... (we want to dance to the whims and wishes of the FII)

Indian Rupee is now one of the worst performing currencies in the world. The rupee’s decline is based on the expectation dollar demand will remain strong due to worries over the euro zone debt crisis.

The Reserve Bank of India has, so far, responded to the depreciating rupee with minimal intervention in the market. One of the reasons is that country’s foreign exchange reserves of $300+ billion may not be enough to defend the rupee, especially when the intervention comes as a reaction to global factors. While exporting industries such as information technology, gems and jewelry, and textiles will be happy, consumers are likely to suffer. The higher cost of imported inputs across a range of products will cause an increase in their end prices, especially in the case of fuels.

The reasons for this downfall are many. India’s growing trade deficit, global slowdown and global investors’ preference for gold and US$ for safe investments, poor returns from Indian stock market (BSE Sensex lost close to 25% in 2011) are some of the reasons for this downfall. To reverse this trend, India needs to put some key strategies so that the demand for Indian Rupee increases in the forex market. These strategies will take longer term to take effects and are good for the overall economy in the coming years. Some of the probable strategies are: increase export, reduce import, reduce external borrowings.

The answer for your question is the basic principle of Economics. Treat for a while dollar as a commodity. The price of any commodity goes up, cetirus paribus, (when other things remain constant) when demand for it goes up. The demand for dollar in India is always there because of raising imports more so oil and other goods.

The manipulators of Stock market, especially, by the so called foreign investors is the root cause for the present scenario. When foreign investors invest in Indian stock market, The dollars/pounds come in. When they decided to get out after making huge profits then dollars and pounds go out of our system. Then demand for dollars goes up and making Indian currency weak for no fault of our government or people. To avoid such situations , though, it appears to be crude and rude, we should prohibit short term foreign investments from the stock market.

We should encourage NRIs to invest/deposit in India by offering various incentives.

We should constantly find ways and means to have import substitutes.

We should limit import of Gold and Silver which is at the cost of foreign exchange.

Many reasons may be assigned. It is Foreign Director Investment in short term deposit and share market that is betrayed us.These deposits were withdrawn when thy gained maximum there by creating more demand of dollars.Import bill of crude oil has increased many fold.Our export has fallen &import has risen.Our Foreign reserve of Dollar is drained.Reason? our economic policy is indirectly controlled by America.

1800 Usd In Inr

It's losing it's value gradually just like the American Dollar because of economic inflation. It's a pretty normal occurrence.

Because of need for Oil and demand for Large population We are helpless, Solution - - - - ->Increase Exports and encourage education and agriculture. Each and every individual should contribute to Agriculture and Education, in whatever way he or she can. We need to bring balance in every aspect we go through!!!!.Needs social awareness and economic education.

the inr is losing due to inflation. thats the main reason. inr always has to bear the rise of $ at the cost of depreciating itself.

just bcoz the value of rupees fall, govt. is punishing common ppl by rising petrol rates

Maybe govt. think we common people have tree of money. Answer this

http://in.answers.yahoo.com/question/ind%E2%80%A6

PM/FM are obliging US Companies.