03-21-18 indian rupee ( are 311 - markets sagar mistry ₹) · 2018-04-15 · overview &...

Indian Rupee (₹)

Sagar MistryARE 311 - Markets03-21-18

Overview & Background

- The Indian Rupee is the official currency of the Republic of India, and is issued by the Reserve Bank of India.

- Similar to the dollar, 1 Indian rupee consist of 100 paise.

- Ancient India traces back to the 6th century BC., and are believed to be the first users of coins as currency.

- Sultan Sher Shah Suri (1486-1545), was said to issue the first rupee. 40 copper pieces was equal to 1 rupee.

- Primarily know denominations are: Bills: INR 1, 2, 5, 10, 20, 50, 100, 500, 1,000 || Coins: 50 paise

Overview & Background(cont.)

- Prior to the Indian Independence from British rule, each state in India had its own paise to rupee ratio. It took 10 years after the independence to finally split the rupee into 100 paise.

- The Indian rupee was fixed to the British pound from 1927-1946, then was fixed to the US dollar after independence.

- In 1947, 1 rupee was equal to 1 US dollar- Since then, the Indian rupee has devalued to

~65.06Rs. / 1 US Dollar (03-18-18)

- Cost of living - https://www.numbeo.com/cost-of-living/countr

y_result.jsp?country=India

https://www.numbeo.com/cost-of-living/country_result.jsp?country=India


US/India Bilateral Trade(Import/exports)

- Total trades between the 2 countries in 2016 were ~$114.8 billion. Exports: $42 billion, Imports: $72.8 billion.

- Ranked 9th largest in goods trading with the US.- The U.S. goods trade deficit with India was

$24.3 billion in 2016, a 4.2% increase ($970 million) over 2015. Also a $6.5 service trade deficit.

https://ustr.gov/countries-regions/south-central-asia/india


Indian Rupee (₹)

Sagar MistryARE 311 - Markets03-21-18

Overview & Background

- The Indian Rupee is the official currency of the Republic of India, and is issued by the Reserve Bank of India.

- Similar to the dollar, 1 Indian rupee consist of 100 paise.

- Ancient India traces back to the 6th century BC., and are believed to be the first users of coins as currency.

- Sultan Sher Shah Suri (1486-1545), was said to issue the first rupee. 40 copper pieces was equal to 1 rupee.

- Primarily know denominations are: Bills: INR 1, 2, 5, 10, 20, 50, 100, 500, 1,000 || Coins: 50 paise

Overview & Background(cont.)

- Prior to the Indian Independence from British rule, each state in India had its own paise to rupee ratio. It took 10 years after the independence to finally split the rupee into 100 paise.

- The Indian rupee was fixed to the British pound from 1927-1946, then was fixed to the US dollar after independence.

- In 1947, 1 rupee was equal to 1 US dollar- Since then, the Indian rupee has devalued to

~65.06Rs. / 1 US Dollar (03-18-18)

- Cost of living - https://www.numbeo.com/cost-of-living/countr

y_result.jsp?country=India



US/India Bilateral Trade(Import/exports)

- Total trades between the 2 countries in 2016 were ~$114.8 billion. Exports: $42 billion, Imports: $72.8 billion.

- Ranked 9th largest in goods trading with the US.- The U.S. goods trade deficit with India was

$24.3 billion in 2016, a 4.2% increase ($970 million) over 2015. Also a $6.5 service trade deficit.



Exports & Imports - US Exports: 21st largest agricultural export market. Leading domestic export categories include: tree nuts ($522 million), cotton ($250 million), pulses ($144 million), fresh fruit ($72 million), and planting seeds ($32 million)

- .- US Imports: 20th largest supplier of agricultural

imports. Leading categories include: spices ($279 million), rice ($158 million), tree nuts ($157 million), essential oils ($151 million), and processed fruit & vegetables ($114 million)

INR ₹ vs. USD $

http://www.forecast-chart.com/usd-indian-rupee.html

https://tradingeconomics.com/india/currency



A Stronger US Dollar leads to...

***General Rule of Thumb***

- A weaker domestic currency stimulates exports and makes imports more expensive (and vice versa)

From the American Point of View

- As the Indian Dollar weaken, US Exports decrease.

- Since the US Dollar is strengthening, Imports from India increase.

Black Money coming to light.

- In 2016, PM Narendra Modi announced the demonetisation of the 500Rs and the 1000Rs bills.- The goal was to crack down on the use of counterfeit cash that were being used to fund illegal

activity and terrorism.- The entire country was required to come into the banks and turn in all there cash bills and have

them electronically entered into a debit card type system.

- Did this work?- By the end of 2017, 99% of the banned currency had been turned into the banks and only

$171,757,600 worth of Indian rupees were discarded. ( $17 billion dollars of black market rupees turned “white”.

References http://www.forecast-chart.com/usd-indian-rupee.html


https://www.oanda.com/currency/iso-currency-codes/INR

http://www.indianhiddengems.com/2015/08/the-history-of-indian-rupee-devaluation.html









Exports & Imports - US Exports: 21st largest agricultural export market. Leading domestic export categories include: tree nuts ($522 million), cotton ($250 million), pulses ($144 million), fresh fruit ($72 million), and planting seeds ($32 million)

- .- US Imports: 20th largest supplier of agricultural

imports. Leading categories include: spices ($279 million), rice ($158 million), tree nuts ($157 million), essential oils ($151 million), and processed fruit & vegetables ($114 million)

INR ₹ vs. USD $





A Stronger US Dollar leads to...

***General Rule of Thumb***

- A weaker domestic currency stimulates exports and makes imports more expensive (and vice versa)

From the American Point of View

- As the Indian Dollar weaken, US Exports decrease.

- Since the US Dollar is strengthening, Imports from India increase.

Black Money coming to light.

- In 2016, PM Narendra Modi announced the demonetisation of the 500Rs and the 1000Rs bills.- The goal was to crack down on the use of counterfeit cash that were being used to fund illegal

activity and terrorism.- The entire country was required to come into the banks and turn in all there cash bills and have

them electronically entered into a debit card type system.

- Did this work?- By the end of 2017, 99% of the banned currency had been turned into the banks and only

$171,757,600 worth of Indian rupees were discarded. ( $17 billion dollars of black market rupees turned “white”.

References http://www.forecast-chart.com/usd-indian-rupee.html












03-21-18 indian rupee ( are 311 - markets sagar mistry ₹) · 2018-04-15 · overview &...

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