Rupee's travails: What has led to the fall, and what can Reserve Bank do?

The foremost reason for the currency's fall is the money being pulled out from the Indian economy by the FPIs and FIIs. In the last six months, FPIs have pulled out Rs 2.32 trillion

The rupee has been under immense sell-off pressure since the beginning of 2022. The situation has worsened since the Russia-Ukraine war broke out on February 20, 2022. On February 21, 2022, the rupee stood at 74.49 against the dollar. On July 8, it was trading at 79.24, 6 per cent below the rate on February 20. During these four and half months, the Indian currency has hit its all-time low several times. The latest one was on July 5, when it hit 79.38 per US dollar.

Why is the rupee falling?

The foremost reason for the currency's downfall is the