Though the rupee recovered on Tuesday from its record low against the US dollar a day before, it continues to be under pressure. MV Srinivasan looks at the reasons behind the decline, the performance of the rupee vis-a-vis its peers and to what extent exporters stand to benefit from a weaker rupee Why is the rupee falling? The rupee is falling due to a combination of factors like the war in West Asia — resulting in a sharp rise in crude oil prices, US tariff uncertainties and foreign capital outflows. In a market with risk-off sentiment, US assets rank among the safest. The Iran war has heightened supply-side fears, mainly for energy imports.