understand the fluctuating dollar value against the rupee‚ let us get to know some basics: Exchange rate – the rate at which a currency can be exchanged. It is the rate at which one currency is sold to buy another. Foreign exchange market – Also known as “Forex” or “FX”. It is a market to trade currencies Indian foreign exchange rate system – India FX rate system was on the fixed rate model till the 90s‚ when it was switched to floating rate model. Fixed FX rate is the rate fixed by the central
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DETERMINANTS OF EXCHANGE RATE FLUCTUATIONS FOR VENEZUELA: APPLICATION OF AN EXTENDED MUNDELL-FLEMING MODEL HSING‚ Yu* Abstract Applying and extending the Mundell-Fleming model‚ this study attempts to examine the behavior of short-term real exchange rates for Venezuela. It finds that the real effective exchange rate is positively associated with real government deficit spending and negatively influenced by real M2‚ the world interest rate‚ county risk‚ and the expected inflation rate. Hence‚ the
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concerning chapter for India during last two years and specifically last two months is the weakening of rupee against dollar. It is not only that rupee has lost its value in the global context but also dollar has improved its performance in the global trading markets. The outstanding performance of US equities and the improvement in the labor market has made Americans more optimistic about the US economy‚ thereby stimulating greater hopes of QE(Quantitative Easing) tapering. The government of India is
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THE IMPACT OF EXCHANGE RATE FLUCTUATION ON MACROECONOMIC PERFORMANCE IN NIGERIA CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY This study is designed to examine the causes of exchange rate fluctuations and their impact on the Nigerian economy since there is scarcely any country that lives in absolute autarky in this globalised world. The economies of all the countries of the world are linked directly or indirectly through asset or/and goods markets. This linkage is made possible through
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Real story of American Dollar v/s Indian Rupee An Advice to all who are worrying about fall of Ind ian Rupee Throughout the country please stop using cars exce pt for emergency for only seven days (Just 7 days) Definitely Dollar rate will come down. This is tru e. The value to dollar is given by petrol only.Thi s is called Derivative Trading. America has stoppe d valuing its Dollar with Gold 70 years ago. Americans understood that Petrol is equally valuab le as Gold so they made Agreement
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Topic: The effects on China’s economy due to fluctuation of exchange rate. 1. Introduction China’s economy is huge and expanding rapidly. In the last 30 years‚ the rate of Chinese economic growth has been almost miraculous‚ averaging 8 percent growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10 times during that period‚ with Chinese GDP reaching 3.42 trillion US dollars in 2007. China already has the biggest economy after the United States and most analysts
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Chapter 10 Measuring Exposure to Exchange Rate Fluctuations Lecture Outline Is Exchange Rate Risk Relevant? Transaction Exposure Estimating “Net” Cash Flows in Each Currency Measuring the Potential Impact of the Currency Exposure Assessing Transaction Exposure Based on Value-at-Risk Economic Exposure Economic Exposure to Local Currency Appreciation Economic Exposure to Local Currency Depreciation Economic Exposure of Domestic Firms Measuring Economic Exposure Translation Exposure Does Translation
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the impact of Dollar-Rupee movement on Indian equity market. 2. INTRODUCTION TO THE STUDY: The study is about how the Rupee appreciation or Rupee depreciation against Dollar impacts the investors in Indian equity market. The study details about the concepts of Currency fluctuations‚ Rupee appreciation and Rupee Depreciation. * Currency fluctuation There are mainly two ways by which currency rates are managed. Firstly‚ countries fix their currency against dollar. Hence the exchange rate
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(disambiguation). For the Malayalam film‚ see Indian Rupee (film). Indian rupee ₹ | रुपया (Hindi) | | ISO 4217 code | INR | Central bank | Reserve Bank of India | Website | www.rbi.org.in | Official user(s) | India | Unofficial user(s) | Bhutan (alongside theBhutanese ngultrum) Nepal (alongside theNepalese rupee) | Inflation | 5.96%‚ March 2013 | Source | Economic Adviser | Method | WPI | Pegged by | Bhutanese ngultrum (at par) Nepalese rupee (1 INR = 1.6 NPR) | Subunit |
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Rupee exchange DepReciation: impact analysis January 2012 The Associated Chambers of Commerce and Industry of India ASSOCHAM Corporate Office: 1‚ Community Centre‚ Zamrudpur‚ Kailash Colony‚ New Delhi-110048 Tel: 011 46550555 (Hunting Line) | Fax: 011 46536481/82‚ 46536498 Email: assocham@nic.in | Website: www.assocham.org Executive Summary • The study assesses the impact of rupee depreciation on: The import bill of the country Key import commodities • Rupee depreciation has
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