It is reported that Rupee is facing one of the heaviest fall against Dollar in last 21 months. The dollar rupee exchange ration which was as high as Rs. 63.27 in January 2nd has fallen to Rs. 64.25. It is an unexpected fall since the reign of Narendra Modi Government. The fall is continuing to persist even after the fourth day and it makes the county’s current account deficit rising. One of the main reasons for the rising account deficit lies in the fact that India is a heavy importer of crude oil and gold. The crude oil exporting countries mainly accept dollar only against their exports and it increases the demand for dollar. Another reason for the value fall of Indian rupee is because of the tendency of the Indian banks and importers to buy dollar in large quantities to meet their higher demand. An extra reason for the fall in the value of Indian rupee is attributed to the rise in the supply of Indian rupee which is above 29% in the last 24 months. The Exchange professional predict a further fall in the value of rupee as the world demand for dollar is increasing rapidly. The central Federal Bank of America is summiting now for a review of its current policies and it is pointed out that it may increase interest rates further and this will also lead to another boost in the dollar rupee ratio. The rupee is facing the same problem against other major currencies such us euro, yen, pound etc.. Most of the foreign investors are withdrawing their investment from the share market and it widens the seriousness of the situation. The worst part of the situation is rise in inflation rate and rise in the price of essential commodities. This may imbalance the budget of the common people. The only beneficiaries of this occasion are the NRIs and exporters. But the RBI is expected to interfere in this matter if the dollar value is increased above Rs. 65. If the RBI couldn’t control the excess money supply and higher demand for dollar the value of our rupee may fall flat on the ground and may reach Rs. 70 in the coming months. As a report says : ‘ There is a high level of pessimism in the markets. The government needs to address the rising current account deficit and slow growth until optimism finally settles in’.