Last year US Dollar fell against major currencies including Indian Rupee. In year USD fell 10% from approx INR 44 to INR 39. What was main reason of this slide ?
From Yahoo news:
Foreign funds bought more than $17 billion of stocks last year, a key driver of the rupee's rise of more than 12 percent in 2007. But the funds have sold more than $3.5 billion so far this year as weak global markets heighten risk aversion.
Is this slide over ?
Now Indian stock market is flat and does not look attractive to most foreign buyers. Hence dollar flow to India will reduce for next few months. In last one month USD has gain 2% against INR and now looks like it has potential to cross INR 40 in few days.
Google Graph.
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