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Let me explain it step wise: 1. Imagine an X- shaped diagram in front of your eyes. Now place this within X and Y axis with X axis being INR and Y axis being USD. Now imagine first arm of the X- diagram, the arm that goes (\) ie topleft to bottom right: this is the Supply curve of USD vs INR. The other arm that goes (/) ie topright to bottom left: this is the demand curve of USD vs INR. The point where both the arms cross is the equilibrium point (E). This is the current exchange rate ie 1 USD =x INR. 2. Now, if Forex Reserve increases (inflates) the supply arm of the (X curve) shifts upward ie more toward the Y-axis. The demand curve remains constant. Hence the point where the 2 arms interesect, the equilibrium:E, have shifted. This new E, would mean less INR for more USD. 3. Hence the appreciation of INR in effect, as the forex reserve increases (i), the supply of USD in the local Indian market (i), hence there are fewer INR chasing the USD, which indicates a supply glut of USD and hence drop in the exchange rate that USD can command , hence the rupee appreciation.
What else can I help you with?
Who determines forex rate?
Forex rates are determined by a variety of factors. See related links for more information about this.
Why is forex useful?
Forex is the only way to get more money.
What is forex ea?
Forex EA is an automated Forex software that follow some sophisticated logic and able to open and close orders by itself.
Why do a nation need forex reserves?
Forex reserve or Foreign exchange reserves are only the foreign currency deposits and bonds held by central banks and monetary authorities. A country needs Foreign exchange reserves as it is important indicator of nation's ability to repay foreign debt and also for currency defense. It is also used to determine credit ratings of nations.
What is curso forex and how does it work?
Curso Forex is a website about trading. Here one will find a lot of information on trading with forex, educational videos, recommended links, and a choice to get a subscription.
What are all the reasons for Appreciation in Indian Rupee value as against US Dollars?
this is due increase of forex reserves and intake remittances with a booming economy wrt trade . it is also due to sinking or standstill of a dollar wrt raising euro also causes appreciation of a rupee. the mechanism to control inflation leads to enhance monetory reserves ultimately leads to appreciation of a rupee.
How do you make liberty reserve money on forex market?
Liberty Reserve currency is a private digital currency. It doesn't usually trade on any regulated exchange or over the counter (OTC) with retail forex broker. The only way to get paid with liberty reserve dollars would be to choose a retail forex broker who accepts Liberty Reserve as a withdraw option. Then when you make profits, you may withdraw to Liberty Reserve. Make sure you check with your broker first, as often times you must first deposit with the same form of currency you withdraw with.
Who determines forex rate?
Forex rates are determined by a variety of factors. See related links for more information about this.
What are economic indicators, and how do they impact forex markets?
Economic indicators are statistical data that provide insights into the overall health and performance of an economy, influencing key decisions in financial markets. In the context of forex (foreign exchange) markets, these indicators include metrics like GDP growth, inflation rates, employment figures, and interest rates. They serve as signals for traders and investors to predict currency trends and make informed trading decisions. For example, strong economic growth or rising interest rates in a country may lead to an appreciation of its currency, while high inflation or poor job data can weaken it. As these indicators are released, they can cause significant volatility in forex markets, as traders react to the potential impact on a country's economic stability and future outlook.
What is the rank of India in foreign exchange forex reserve?
India holds ninth position in terms of foreign-exchange reserves as of may 2012.
Is forex mutual funds too risky?
Forex mutual funds have more risk than a FDIC saving account but they pay more. When accessing risk you must take into account the risk of not keeping up with inflation. It all depends on your risk tolerances, which you did not mention
Where can I get information regarding forex exchange?
There is a website that will be very helpful to you and has alot of information of Forex exchange. The website is www.fxstreet.com all you have to do is go on there and you will find lots of stuff related to the topic.
Reasons of rupee appreciation against dollar?
The main reason for Rupee Appreciation is on account of 1. Huge forex inflow mainly the USD. This inflow is in the form of FDI, ECB, Investment and Remittances. 2. Growing Exports. Resulting in huge inflow in USD thus making the domestic currency appreciate against the dollar. 3. Political Dilemma. Central bank with stringent task to achieve inflation at 4.0 to 4.5% is not in a position to help exporter by means of infusing rupee in the market. Abir Roy
What are Forex Reserves?
Forex reserves are financial assets in diverse foreign currencies, held by central banks and monetary authorities of countries. Most countries maintain their Forex reserves in the major currencies like the dollar, yen, pound, gold, e.t.c. The essence of the reserve is to shield or backup liabilities or form of savings, which generates interest.See: en.wikipedia.org/wiki/Foreign-exchange_reserves
Foreign exchange management and its related project works?
i want to make a carrer in forex management
What is forex reserve?
Forex reserves are a country's financial safety net - like a giant piggy bank of foreign currencies. They help stabilize the economy and boost confidence. Strong reserves give flexibility to weather economic storms and attract international business, supporting growth and stability.
How do you generate foreign exchange?
To generate understand speculation and learn more about Forex related news and stratergy.
