Why Is The Dollar Stronger Than The Rupee?

Added: 2026-05-25

[00:00:00]Nobody prints 85 rupee on a dollar bill.

[00:00:03]So who decides that $1 equals 85 rupees?

[00:00:06]And what if tomorrow it becomes a h 100red rupees? Your petrol price could rise. iPhones could become more expensive. Foreign education could suddenly cost lacks more. But here's the crazy part. India's government doesn't directly decide the dollar rupee price every day. The value changes every second because of one thing, demand and supply. When India buys oil, electronics or gold from other countries, India needs dollars. More demand for dollars equals dollar becomes expensive. But when foreign investors bring money into India or Indian IT companies earn from abroad, more dollars enter India and that can strengthen the rupee. But then comes the biggest question. If the market decides everything, why does the RBI sometimes secretly enter the market and buy or sell dollars? And can India ever make the rupees stronger than the dollar? The full story is way more interesting than most people think.

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