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Rupee is the Indian currency. Just like any commodity the Rupee also has a price, the value you pay to exchange a rupee. The US Dollar being the predominant currency, all prices of currencies are generally quoted in Dollars. Hence in case of the Rupee, its price at any point in time maybe say, Rs.45/$ (determined through various aspects such as forex reserves, FDI inflows, rate of interests and so on). With the change of the indicators the value of the rupee as per the dollar changes. When the rupee becomes dearer i.e. say Rs.40/$ it is said to have Appreciated (Value) in the reverse case say Rs.50/$ then the Rupee Depreciates (Value).

Rupee changes values for a range of reasons, like if US performs very well then people will demand more US dollars, exchanging their rupee. This Demand will raise the price of the US dollar and hence depreciate the Indian Rupee.

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What is an antonym for depreciation?

Appreciation is an antonym for depreciation.


How the inflow in USD results in rupee appreciation?

The inflow of USD into a country's economy typically leads to rupee appreciation because it increases the demand for the local currency, the Indian rupee, as foreign investors exchange their dollars to invest in Indian assets. This heightened demand for the rupee raises its value relative to the dollar. Additionally, a stronger rupee can result from increased foreign direct investment (FDI) or portfolio investment, which further supports the currency's value. Ultimately, this appreciation can affect trade balances and inflation rates within the economy.


What is the difference between currency depreciation and appreciation?

depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. Appreciation is a term used in accounting relating to the increase in value of an asset.


What is the currency appreciation?

The rise in value of a currency relative to other currencies and sometimes gold. There are many economic explanations for the movement (or appreciation and depreciation) of currencies relative to one another and to gold.


Differences between currency depreciation and apreciation?

Devaluation and depreciation are often interchangeable, although there is a subtle difference. Devaluation refers to changing the value of a currency in a fixed exchange rate, while depreciation is decreasing the value in a floating exchange rate.

Related Questions

What is an antonym for depreciation?

Appreciation is an antonym for depreciation.


What measures can be taken to reduce rupee depreciation?

Rupee depreciation is currently being attributed to several things. One of those things is the ups and downs of the world economy. Many economists say that the drastic depreciation of the rupee with level off in time when the world market does.


Indian rupee depreciation?

If 1 $ is 49 today compared what it was ie; 1 $= 43 Rs, it has depreciated against the US dollar making NRIs gain from it and also helping exports Eg :IT companies. NRI's can send more money into the country(India), make purchases and benefit from it, as they have to shell out lesser dollars for their purchases. Learn about rupee depreciation - Rupee depre­ci­a­tion means that rupee has become less valu­able with respect to dol­lar. If the rupee moves upward from 30 per dol­lar to 40 per dol­lar then rupee is said to depre­ci­ate. It means that rupee is now cheaper than what it used to be ear­lier, so if the dol­lar was Rs 30 and now it reached 40.


What is the opposite of appreciative?

The opposite of appreciation (increased value) is depreciation. The opposite of appreciation (expressed gratitude or praise) could be criticism, disapproval, admonition, or condemnation; it could be a lack of appreciation (disregard or neglect).


How the inflow in USD results in rupee appreciation?

The inflow of USD into a country's economy typically leads to rupee appreciation because it increases the demand for the local currency, the Indian rupee, as foreign investors exchange their dollars to invest in Indian assets. This heightened demand for the rupee raises its value relative to the dollar. Additionally, a stronger rupee can result from increased foreign direct investment (FDI) or portfolio investment, which further supports the currency's value. Ultimately, this appreciation can affect trade balances and inflation rates within the economy.


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.


Appreciation of Indian rupee and its effect on IT industry?

The appreciation in Indian Rupee means less Rupees for every Dollar, naturally the IT companies who earn most of the revenue in Dollars would earn less money in Rupees which would result into decrease in their profits.


What is the definition of 'depreciation of Pakistan rupee'?

Depreciation of Pakistani rupee means that it has decreased in value as compared to another currency, let's say US$For example:Pak Rupee was equal to 83.66 in November 2009, & fell to 85.04 in December 2010. This shows that more units of Pk rupees would be needed to purchase US$P.S. "Devaluation" also means decrease in the value of a currency, but by the monitory policy used by the government, where as, "depreciation"is the decrease in value due to market forces (demand and supply).


What is opposite of appreciated?

The opposite of appreciation (increased value) is depreciation. The opposite of appreciation (expressed gratitude or praise) could be criticism, disapproval, admonition, or condemnation; it could be a lack of appreciation (disregard or neglect).


Is rupee appreciation good or bad for India?

ruppee appreciation is good for India as India is mostly importing country rather then exporting...so its good for India....


A 25 percent appreciation in Yuan would be equivalent of what percent US dollar depreciation?

20%


What is appreciation of rupee?

Rupee Appre­ci­a­tion means that rupee has become more valu­able with respect to dol­lar. If the rupee moves down­wards from 60 per dol­lar to 50 per dol­lar then rupee is said to appre­ci­ate. It means that dol­lar is now cheaper than what it used to be ear­lier, so if the dol­lar was Rs 60 and now it reached 50.

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