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The exchange rate is a relative.
So the Indian Rupee will get stronger (the rate will go lower) when the PERCEPTION of economic fundamentals are positive for India verses the PERCEPTION of fundamentals for the US.
There is another factor which is 'flight to quality'. There is a (false I believe) perception that the US is 'safe' and s, in times of uncertainty, people will gravitate toward the safety of the US Dollar. here is a similar perception held for gold.
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Why did the Indian Rupee depreciate so much against the US Dollar?
The availability or rather the supply of the US Dollar in the Indian markets is pretty limited. Because of uncertainty in the global economic scenario, foreign investors (especially from USA) have turned net-sellers and USD Inflows into the country has fallen sharply. The US dollars into the Indian economy by the FII's (Foreign Institutional Investors) not only guides the movement of the Indian Stock Markets, it also is a potent force that can determine the exchange rate movement of the Indian Rupee. The synopsis of this FII situation is as follows: "If there is a net inflow of money (USD) from FII's the rupee strengthens or appreciates against the US Dollar. When there are net outflows, it depreciates" For Example: During 2010, there were record inflows of funds from FII's into the Indian system and hence the Rupee was very strong. Remember the days when the Rupee was around 42-43 rupees per US Dollar??? Now in 2011, FII's are withdrawing their funds and hence the value of the rupee is depreciating
What is the explanation the dollar rises against the euro?
The dollar usually rises against the euro whenever there is good news that is likely to increase confidence in the USA economy. A strong jobs report and currency reserves will also make the dollar bullish.
What are the reason for decline value of Indian rupee in foreign exchange market?
There are so many reasons of depreciating rupee, but I would like to explain the first one, which is most important.Why dollar is moving up and rupee is going down? There has been a recent fall in rupee since some days ago and a dramatic increase in dollar. It was 49.50, then 50.12, 51.10, 52.60, 53.54, 54.40, and yesterday it was 55.32 and today according to google search 1 U.S. dollar = 55.5987991 Indian rupees. Why is this happening?First Reason - Dollar is in DemandBRIC countries like India have emerging economy, so a huge percentage of investment in India is from outside the country, especially from US but due to recession in US, big institutions are collapsing and many of them are on the verge of breakdown. They are suffering huge losses in their country. They have to maintain their balance sheets and look strong on all statements, so to recover losses in their country, they are pulling out their investments from India. Due to this pulling out of investment by these big companies from India or in other terms disinvestment, demand of dollar is raising up and rupee is depreciating.There was a huge interest rate differential between India and US. Now RBI is reducing all kind of rates to increase money supply in market, so deposit rates will also move downwards. It will reduce the rate differential between two countries and affect the fixed investment in India in a negative manner.Second reason - Collapse of International TradeIf you observe in terms of international trade, commodity prices are crashing at international level.Importers are trying to accumulate dollars, as they have to pay in terms of dollars and at the end demand is increasing against the rupee. This has not happened yet due to lack of confidence in all kind of markets.Exporters have a very few orders from outside countries, so there is no matter of converting dollar into rupee thereby decreasing demand for rupee.Besides the above-mentioned two reasons, there are many other reasons, which I would like share in the comments section below with you and others.Now 1 USD is at 55.59 Indian rupees and expected to appreciate further due to huge inflows. The major gainers are Indian IT companies including BPOs, call center outsourcing, medical transcription outsourcing, and Indian content writers, especially Indian Adsense publishers who also earn in dollars.regards- IV chennai
What is the value of a 1936 silver dollar?
Please post a new question with the coin's country. It can't be an American silver dollar because the US didn't mint any silver dollars after 1935. No new $1 coins were issued until 1971. If the coin has a picture of an eagle on the back and the words HALF DOLLAR that's a strong clue that it's not a silver dollar.
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Indian rupee is not being strong then U.S dollar because of the exporting falling and India dependence on foreign flows.Other factors include the slow growth of the economy and the fiscal deficit.
Why did the Indian Rupee depreciate so much against the US Dollar?
The availability or rather the supply of the US Dollar in the Indian markets is pretty limited. Because of uncertainty in the global economic scenario, foreign investors (especially from USA) have turned net-sellers and USD Inflows into the country has fallen sharply. The US dollars into the Indian economy by the FII's (Foreign Institutional Investors) not only guides the movement of the Indian Stock Markets, it also is a potent force that can determine the exchange rate movement of the Indian Rupee. The synopsis of this FII situation is as follows: "If there is a net inflow of money (USD) from FII's the rupee strengthens or appreciates against the US Dollar. When there are net outflows, it depreciates" For Example: During 2010, there were record inflows of funds from FII's into the Indian system and hence the Rupee was very strong. Remember the days when the Rupee was around 42-43 rupees per US Dollar??? Now in 2011, FII's are withdrawing their funds and hence the value of the rupee is depreciating
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Compared to the moon, it's pretty strong. Compared to Jupiter, it's pretty weak.
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What is the Indian name for strong wolf?
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How do you make a dollar?
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There are many areas throughout South America in which the U.S. dollar is very strong. for example one U.S. dollar in Brazil is equivalent to 1.87 Brazilian reais.
What is moons gravity compared to earth?
16.55% as strong on the surface.
How strong is the gravity on the moon compared to the earth?
Lunar gravity is one-sixth as strong as Earth's gravity.
How do you make a dollar float?
get a very strong magnet and put it over the dollar. Since the dollar has iron in it, it will rise a little bit.
What actors and actresses appeared in Untitled Million Dollar Strong Project - 2009?
The cast of Untitled Million Dollar Strong Project - 2009 includes: Ken Jeong
