The Indian Rupee Fell to a Historic Low

India’s currency fell to a historic low of 88.62 rupees per U.S. dollar on September 23 as higher U.S. visa fees hurt India’s IT sector and prompted foreigners to sell Indian stocks. Additionally, the United States imposed tariffs of up to 50% on Indian goods.—khaleejtimes.com

Answer the following questions to check your understanding of the story.

What is the effect of American investors selling Indian stocks on the market for Indian rupees?

a) The demand for rupees increases

b) The supply of rupees increases

c) The demand for rupees decreases

d) The supply of rupees decreases

What are the effects of U.S. tariffs of up to 50% on Indian exports and on the market for Indian rupees?

a) Indian exports decrease and the supply of Indian rupees increases.

b) Indian exports increase and the supply of Indian rupees increases.

c) Indian exports decrease and the demand for Indian rupees decreases.

d) Indian exports increase and the demand for Indian rupees increases.

The Indian Rupee Fell to a Historic Low

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