Why rupee is depreciating despite strong FII flows?????????

The rupee has plunged by around 2% in just a week. Ironically, during the same period, markets saw inflows of up to $2.4 billion. This brings us to the riddle, why Indian currency devaluates?

There might be many reason but few reasons are stronger like:-

1. Dollar is getting stronger.
2. There is a huge gap in the export and import bills, this causes pressure in the current account and affect GDP.
3. EURO Zone crisis is back. Investor is not investing in risky assets and selling euros and buying dollars.
4. Huge increase in the import bills with the crude oil and gold being imported the most which contributes around 40% in total.
5. Indian politics is the doldrums which is also affecting the Indian economy, government is not taking care of the new ways to increase exports by adding new products and services.
6. Lack of intervention of central bank to control the fluctuation of money value and stabilize the Indian currency by using their reserves.
7. As the credit rating of India deteriorates to BBB resulting in the outflow of money from the country by the foreign investors.
8. Slowing down of Asian market also affects the Indian currency.