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How does the depreciation of the rupee affect exports?
For example, suppose one unit of Currency A is worth one unit of Currency B. If Currency A depreciates such that it becomes worth half of one unite of Currency B, then exports denominated in Currency A are only half as expensive when trading in a Currency B market.
How does exchange rate of Indian rupee work?
The exchange rate of the Indian rupee is dependent upon the market conditions, where the demand and supply play a major role. In order to adopt the effective exchange rates the RBI makes buy and sell transactions to keep the low variability and volatility in exchange rates.
How does rupee appreciation affect the US economy?
Logic says rupee appreciation shows the Indian economy is strengthening against US economy and depreciation makes the economy weaker.
Where does the rupee symbol come from in India?
The Indian rupee symbol ‘₹’ (officially adopted in 2010) is derived from the Devanagari consonant “र” (Ra) and the Latin letter “R”. The first series of coins with the rupee symbol was launched on 8 July 2011. The Reserve Bank manages currency in India and derives its role in currency management on the basis of the Reserve Bank of India Act, 1934.
Last Update: Oct 2021
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