Dollar vs Rupee war continues. Rupee is losing day by day. Here is an insight on how the Rupee value is decided in international markets in FAQ style.


Why the Rupee rate vs dollar matters?

International buyers or international parties trade in a currency that is strong and everyone find dollar strong.

How the Rupee rate is determined?

The rate is purely decided by demand and supply mechanism. More the demand stronger is the currency. Since India have more imprts compare to its export, the demand for dollar by international sellers is more and indian importers have to buy dollars to pay them.

For other doubts please ask on this forum.

Posted 4 years, 2 months ago by Stock Guru

Peopel accept strong currency only. If we give someone the currency of Zimbabe, ofcourse he will throw it. Even sand cost few lakhs in Zimbabian currency.

As far as Rupee is concerned, though the current scenerio looks black for Rupee. But we should never forget that Indian goverment may be weak but not the Indian people. Indian rupee will be strong again, once a new goverment comes to Power.

Posted 4 years, 2 months ago by CA Pulkit Sharma

Good post and you absolutely wrote in a nutshell. That's a good ideas but you should mention the question-answer bout how it will be checked? How the Indian people can help to increase rupee value with respect to Dollar in current scenario? And what should be the Govenment policy to minimize the difference of value of these two currencies?

Posted 4 years, 1 month ago by Sagarika Pandey

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