Why is rupee declining against dollar despite India doing better than U.S in terms of economic growth?

  1. Dollar is demanded by investors as a safe asset
  2. The impact of Eurozone Crisis caused the Dollar fall against Euro
  3. High Inflation in India caused rise in real exchange rate
  4. Collapse of International Trade in commodity sector

Which among the above justify the question asked?

[A] Only 1
[B] 1 , 2 & 3
[C] 1, 3 & 4
[D] 1, 2 3 & 4

Show Answer

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