Understanding ‘Dollar – Rupee Relation’ amidst current financial crises
Sep 19, 2009 Finance
About ‘Exchange Rate’ of a currency:
The exchange rate of the currency of a country in relation to the currency of another country depends on the comparative trade advantages and economic strengths of the countries.
If one US dollar is equal to 45 rupees, it simply means that in the US, if a dollar fetches 45 oranges while in India, a rupee would fetch only one orange of equivalent size and quality.
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Tags: Anand Wadadekar, capital inflows, commodity, corporations, currencies, currency exchanges, currency values, demand and supply, Depreciation, economic law, economic strengths, entities, exchange rate, foreign exchange market, law of demand, law of demand and supply, rupee, rupees, supply and demand