currency fluctuations
IJCSMS International Journal of Computer Science and Management Studies Vol. 13, Issue 06, August 2013
ISSN: 2231-5268 www.ijcsms.com Impact of Rupee- Dollar Fluctuations on Indian
Economy: Challenges for Rbi & Indian Government
Anshu Grewal
MRIEM, Rohtak, Haryana (India)
broken down and rupee ties to the pound sterling were disengaged. A float exchange regime was established by India. Effective rate of rupee was placed on a controlled, floating basis and linked to a “basket of currencies” with trading partners of India. In 1993 Liberalized exchange rate system (LERMS) was replaced by the unified exchange rate system and a system of market determined exchange rate was adopted.
However, the RBI did not relinquish its power to intervene in the market to control the Indian currency. In India a series of economic reforms including liberalization of foreign capital inflows were initiated since the early nineties. Foreign exchange market has emerged as the largest market in the world and the breakdown of the
Bretton Woods system in 1971 marked the beginning of floating exchange rate regimes in several countries. The focus was given to wide ranging reforms of widening and deepening the foreign exchange market and liberalization of exchange control. The Forex rates are determined by market forces and are based on demand & supply of these currencies. If supply exceeds the demand, the value of the currency depreciates. Abstract
This paper explores the impact of Rupee – Dollar fluctuation on Indian economy. The circumstances which has been created for the economy due to depreciation of rupee against dollar reveals that there has been a strong and significant negative impact of this currency volatility on many sectors. After Lehman
Brother Crisis (2008) again year 2013 reported consequently some toughest move for RBI & Indian govt to defend rupee against dollar. During the six month Indian rupee weakens many times and reached
ISSN: 2231-5268 www.ijcsms.com Impact of Rupee- Dollar Fluctuations on Indian
Economy: Challenges for Rbi & Indian Government
Anshu Grewal
MRIEM, Rohtak, Haryana (India)
broken down and rupee ties to the pound sterling were disengaged. A float exchange regime was established by India. Effective rate of rupee was placed on a controlled, floating basis and linked to a “basket of currencies” with trading partners of India. In 1993 Liberalized exchange rate system (LERMS) was replaced by the unified exchange rate system and a system of market determined exchange rate was adopted.
However, the RBI did not relinquish its power to intervene in the market to control the Indian currency. In India a series of economic reforms including liberalization of foreign capital inflows were initiated since the early nineties. Foreign exchange market has emerged as the largest market in the world and the breakdown of the
Bretton Woods system in 1971 marked the beginning of floating exchange rate regimes in several countries. The focus was given to wide ranging reforms of widening and deepening the foreign exchange market and liberalization of exchange control. The Forex rates are determined by market forces and are based on demand & supply of these currencies. If supply exceeds the demand, the value of the currency depreciates. Abstract
This paper explores the impact of Rupee – Dollar fluctuation on Indian economy. The circumstances which has been created for the economy due to depreciation of rupee against dollar reveals that there has been a strong and significant negative impact of this currency volatility on many sectors. After Lehman
Brother Crisis (2008) again year 2013 reported consequently some toughest move for RBI & Indian govt to defend rupee against dollar. During the six month Indian rupee weakens many times and reached
References: [1] Sumanjeet (2007), “Appreciation of the Indian Currency: Implications for the Indian [2] Lavanya, C.N.M. (2008), The Impact of Rupee Depreciation, The Hindu, November [3] Zanna, F. Luis (2005), „Fighting Against Currency Depreciation, Macroeconomic