exchange rate of rupee

7/27/2019 Exchange Rate of Rupee

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A generally accepted form of money Includes coins and paper notes and are issued by a

government

Used as a medium of exchange for goods and services.

Each country has its own currency

Eg. Switzerland's official currency is the Swiss franc, andJapan's official currency is the yen.

An exception would be the euro, which is used as thecurrency for several European countries.


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The Indian rupee(sign: ) is the official currency ofthe Republic of India.

The issuance of the currency is controlled by the ReserveBank of India.

Banknotes in circulation come in denominations of 5, 10, 20,

50, 100, 500 and 1000.

Rupee coins are available in denominations of 1, 2, 5, 10.


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Historically, the rupee (derived from the Sanskrit wordraupya), was a silver coin

The history of the Indian rupee traces back to Ancient India incirca 6th century BC

Ancient India was one of the earliest issuers of coins in the

world, along with the Chinese wen and Lydian staters.


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Dates Currency system

From 1835 1 rupee = 16 annas = 64 paise

From 1 April 1957 1 rupee = 100 naya paise

From 1 June 1964 1 rupee = 100 paise


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The exchange rate between two countries is the rate at whichone currency can be exchanged for another.

For example, an interbank exchange rate of 91 Japaneseyen (JPY, ) to the United States dollar (US$) means that 91

will be exchanged for each US$1.


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The exchange rate of Rupee is the rate at which Rupee can beconverted into another currency.

Eg. The exchange rate of British Pound Sterling to IndianRupee equals 100.61.

The U.S. dollar is the world's most dominant reserve

currency. So we mostly consider exchange rate of rupee todollar.


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1947

Rupee at par with Dollar as there were no foreignborrowings.

1951 - Introduction of the Five-Year Plan for which thegovernment started external borrowings which devaluated therupee.

1948-1966 - India choose to adopt a fixed rate currencyregime. The rupee was pegged at 4.79 against a dollar.

1966 Wars with China in 1962 and one with Pakistan in1965, resulted in a huge deficit on India's budget, forcing thegovernment to devalue the currency to 7.57 against the

dollar. 1971 - The rupee's link with the British currency was broken

and it was linked directly to the US dollar.


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1975 - The Indian rupee was linked to three currencies, USdollar, Japanese yen and German mark. The value of theIndian rupee was pegged at 8.39 against a dollar.

1985 - Rupee was further devalued to 12 against a dollar.

1991 - India faced a serious balance of payment crisis

following which the rupee was devalued to 17.90 against adollar.

1993 - Rupee was let free to flow and exchange rate wasfreed to be determined by the market. Rupee was devalued to31.37 against a dollar.

2000-2010 - The rupee was traded in the range of 40-50against a dollar.

28th Aug 2013 - Rupee hit a record low of 68.79 per dollar.


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5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

1970-7

1

1971-7

2

1972-7

3

1973-7

4

1974-7

5

1975-7

6

1976-7

7

1977-7

8

1978-7

9

1979-8

0

1980-8

1

1981-8

2

1982-8

3

1983-8

4

1984-8

5

1985-8

6

1986-8

7

1987-8

8

1988-8

9

1989-9

0

1990-9

1

1991-9

2

1992-9

3

1993-9

4

1994-9

5

1995-9

6

1996-9

7

1997-9

8

1998-9

9

1999-0

0

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

2010-1

1

Dollar Vs Rupee


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Market sentiments

Speculation

RBI Intervention

Imports and Exports

Interest Rates


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1966 Economic crisis 1991 Economic crisis

Revaluation(20002007)

2013 Depreciation


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Basic law of economics Price of crude oil

Performance of dollar

Volatility in the equity market

Poor current account deficit

Withdrawal of investors

Contraction of Indian economy


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Oil import demand could be staggered and purchases co-ordinated so that at no point there is undue bundling ofimports.

The government can take initiatives which encourage andincrease the flow of foreign investments into India.

The government can make investments attractive and inviteslong term FDI debt funds in infrastructure sector.

Government can consider temporary import compression.

FDI in the aviation industry, retail can also attract foreigninvestors.


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Lets aim towards it

exchange rate of rupee

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