Question

What are the factors influencing indian rupee exchange rate?

Answer 1

Aside from factors such as interest rates and inflation, the currency exchange rate is one of the most important determinants of a country's relative level of economic health. Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world. For this reason, exchange rates are among the most watched, analyzed and governmentally manipulated economic measures. But exchange rates matter on a smaller scale as well: they impact the real return of an investor's portfolio. Here, we look at some of the major forces behind exchange rate movements.

6 factors that influence exchange rates,

1.Differentials in inflation

2.Differentials in interest rates

3. Current Account Deficits

4.Public Debt

5.Terms of Trade

6.Political Stability and Economic Performance

Answer 2

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༄6 factors influencing exchange rates and what you can do about it:

• Inflation rates. Inflation rates impact a country's currency value. ...
• Interest rates. Exchange rates, interest rates and inflation rates are all interconnected. ...
• Monetary policy and economic performance. ...
• Tourism. ...
• Geopolitical stability. ...
• Import and export value.

hope it helps❤