Rathod Shailendra
A CONCEPTUAL STUDY ON FLUCTUATION OF RUPEE IN RELATION TO DOLLAR
MEHUL RAITHATHA*
ABSTRACT The appreciating rupee is posing a unique set of challenges for the Indian economy. The impact would not be limited to macro economy alone but it will also affect down to the level of firms under various sections of economy. This is conceptual study based on Rupee Dollar relationship in terms of Rupee appreciation that is dollar depreciation and rupee depreciation that is dollar appreciation. It provides valuable insights into impact of changes in currency relations on various sectors of economy keeping in focus economy in general and Indian economy in particular. Pros and Cons of currency appreciation and depreciation are studied as boon and bane for the economic growth. It also provides suggestions or steps needed to control as well as to overcome ill-effects of excessive fluctuations between rupee and dollar keeping in view current trends. KEYWORDS: Appreciation, Currency Fluctuation, Depreciation, Rupee-Dollar. ___________________________________________________________________________ INTRODUCTION Global economy is much more interlinked than it was earlier due to lot of trade taking place between different countries. It goes without saying that U.S. is major trading partner for many nations and biggest trading importer of goods and services from across the world. Change in any direction in U.S. economy is directly going to affect economy of all related countries. Democratic principle and human capital has given India unique position among world community. Indian economic policies are flexible enough to get adjusted to the other nations. India has always been major country when it comes to being trading partner of U.S. which has always given economic and strategic support to country like India occupying strategic importance among world community. THE POLITICAL AND ECONOMIC HISTORY OF A COUNTRY CAN BE TRACED THROUGH ITS CURRENCY Under Bretton wood system in 1944
MEHUL RAITHATHA*
ABSTRACT The appreciating rupee is posing a unique set of challenges for the Indian economy. The impact would not be limited to macro economy alone but it will also affect down to the level of firms under various sections of economy. This is conceptual study based on Rupee Dollar relationship in terms of Rupee appreciation that is dollar depreciation and rupee depreciation that is dollar appreciation. It provides valuable insights into impact of changes in currency relations on various sectors of economy keeping in focus economy in general and Indian economy in particular. Pros and Cons of currency appreciation and depreciation are studied as boon and bane for the economic growth. It also provides suggestions or steps needed to control as well as to overcome ill-effects of excessive fluctuations between rupee and dollar keeping in view current trends. KEYWORDS: Appreciation, Currency Fluctuation, Depreciation, Rupee-Dollar. ___________________________________________________________________________ INTRODUCTION Global economy is much more interlinked than it was earlier due to lot of trade taking place between different countries. It goes without saying that U.S. is major trading partner for many nations and biggest trading importer of goods and services from across the world. Change in any direction in U.S. economy is directly going to affect economy of all related countries. Democratic principle and human capital has given India unique position among world community. Indian economic policies are flexible enough to get adjusted to the other nations. India has always been major country when it comes to being trading partner of U.S. which has always given economic and strategic support to country like India occupying strategic importance among world community. THE POLITICAL AND ECONOMIC HISTORY OF A COUNTRY CAN BE TRACED THROUGH ITS CURRENCY Under Bretton wood system in 1944
References: Nidhi Singh (2007) “Rupee Appreciation: Sectoral Impact on Exports and Imports”, ICAI journal, June. C.R.L.Narsimhan (2003) “Rising Rupees Hidden Massage”, The Hindu, April 3 2003. Shankar Acharya (2007) “Exchange Rate Policy” , Business Standard, April 26. Amit Kapoor (2007) “Rising Rupee and India Growth Story”, The Economics Times, August 29. 273 www.zenithresearch.org.in ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826 Online available at http://zenithresearch.org.in/ M K Venu (2007)“Is the us facing liquidity trap?”, The Economics Times, September 4. Shruti Chauhan & Paramita Chatterjee (2007) “Ship Your Worries”, The Economics Times, September 11. M.Y.Phansalkar(2005) “All about Foreign Exchange and Foreign Trade”, Published by English Edition. Jitendra Sahai (1982) “Dollar in India”, Published by National Publishers, 1982. Gray Shoup (2006)“Foreign Currency Management”, Published by Infinity Groups. Nagendra Chowdhary “Dynamics of Exchange Management” , ICFAI Books www.rbi.org.in 274 www.zenithresearch.org.in