DOLLAR RATE

By: SHUBHAM BAGARIA DIPEN WAGHELA ANUJ MURARKA VIPUL MATHUR

INTRODUCTION The U.S. dollar is a fiat money. It is

the currency most used in international transactions and is the world's most dominant reserve currency.

Several countries use it as their official currency, and in many others it is the de facto currency.

One implication of the dollar rate is that when Dollar($) appreciates then Rupee depreciates, and vice versa.

RUPEE-DOLLAR PARITY (1947) When India achieved Independence in 1947,

there were no external borrowings on India’s Balance Sheet therefore the Exchange Rate as on 15th August 1947 was 1Dollar=1Rupee.

DEVALUATION DURING 1970’s In the Year 1966 under the Reign of Indira

Gandhi, Inflation was on its peak. At this time India was under immense pressure from U.S to devalue Rupee to safeguard the aid received by India from U.S.

As a result, Rupee was devalued to 1Dollar=7Rupees.

DETERMINATION OF EXCHANGE RATE

CAUSES OF DEMAND FOR DOLLAR

PAYMENT OF LOANS TO THE REST OF THE WORLD

GIFTS AND GRANTS TO THE REST OF WORLD

INVESTMENT IN THE REST OF WORLD

DIRECT PURCHASES FROM THE REST OF WORLD

SPECULATIVE TRADE IN THE REST OF WORLD

CAUSES OF SUPPLY OF DOLLAR

EXPORTS OF OUR COUNTRY TO THE REST OF WORLD

MONEY SPENT BY TOURISTS IN OUR COUNTRY

FOREIGN DIRECT INVESTMENT

SPECULATIVE TRADE IN OUR COUNTRY

REMITTANCES BY NRI’s IN REST OF WORLD

LAST 5 YEARS GRAPHICAL DATA

LAST 5 YEARS STATISTICAL DATA In the last 5 years, Rupee was found to be on

a all time low of 44.29 on 14th April 2010.

It was also observed that Rupee was on its peak of 68.978 on 28th August 2013.

REASONS FOR EXCHANGE RATE FLUCTUATIONS

MEASURES THAT COULD BE TAKEN TO CONTROL EXCHANGE RATE

LET’S SUM UP

- Dollar has been widely accepted in many countries in the world.

- Dollar rate has been rising significantly since independence

- -The current political stability has attracted many FIIs

- -Foreign Investment in stock market has also - increased leading to fall in dollar rate- -RBI has laid down many policies to curb

rupee fall