IMPACT OF INDIAN RUPEE AND FOREIGN EXCHANGE RATE

Author (s) : Dr.S.Banumathi

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Abstract :
This paper explores the Import of Indian Rupee and Foreign Exchange Rate. The circumstances which have been created for the economy due to the depreciation of rupee against dollar reveals that there has been a strong and significant negative impact of this currency volatility on many sectors. The relationship between the values of local currencies in terms of foreign currencies and export competitiveness of any country is very complex. This relationship will become more complex if there is the heavy dependence on imported resources in the exported products. During last the one year Indian rupee weakens many times and reached to a level of 68.510 for a dollar in February 2016. Since January 2015, the local currency lost around 12 percent to the US currency. Indian economy which already suffered from large fiscal and current account deficit adversely affected by relatively exchange rate pressure. To track it again on the way many hard decisions were taken by Indian govt. This paper presents different challenges due to these fluctuation and steps triggered by the central bank and government to create stability.

Keywords : Foreign Exchange Rate, Indian Rupee

Conference Date : 17/09/2021

Pages : 19

Paper ID : IESMDT18