🇮🇳 💰Why does India's rupee continue to fall? | Counting the Cost

Описание: While India is often referred to as world's fastest-growing large economy, its currency has fallen by more than 12 percent this year against the US dollar. The Indian rupee is now the worst-performing currency in Asia - despite efforts by Prime Minister Narendra Modi to turn the tide.

The country's finance minister has blamed the depreciation of the rupee on global factors, including the US-China trade war.

So what is behind India's currency crisis?

Gregor Irwin, chief economist at Global Counsel, says there are a number of factors contributing to it.

"The price of oil has gone up and, for a country like India which imports much of its energy, that pushes up the import bill," he says.

"Above all, there are concerns about a divergence in global monetary conditions, US interest rates are rising and that has exposed vulnerabilities in quite a few countries like Argentina, Turkey ... so India has not been immune to that."

As the rupee devalues, the price of fuel increases because the government buys energy in dollars and that "really does squeeze living standards," explains Irwin.

"It's also a political concern ... that not a whole lot the government can do about that, other than try and address other factors that are helping to put down the pressure on the rupee - such as raising interest rates..."

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