It can also lead to devaluation of exchange rates (refixed at a lower rate), this situation will make its imports costlier and its exports cheaper. But keeping a currency under a fixed exchange rate system has its own share of cons as the country’s currency becomes overvalued, resulting in that nation being persistently in the balance of payment deficit. In the case of a fixed exchange rate system, the exchange rates of a country’s currency will be established and the same will remain unchanged for a longer period. It can also be found on the financial web portals. The daily revision of these exchange rates will be listed in the financial sections of newspapers. Though in some exchanges, rates are fixed by an agreement, most of them fluctuate daily. Governments of the respective countries can impose controls on exchange rates as well as certain limitations on the currencies. Every nation determines its exchange rate regime which will apply to its respective currency.įor instance, a country's currency may be floating, fixed or hybrid. The exchange rate also stands as the value of one nation's currency in relation to another country's currency. The Exchange rate refers to the rate at which one country's currency will be exchanged for another country's currency.
Those looking to send and receive money from abroad can use our Indian rupee vs other currencies converter. Currency markets are extremely volatile in nature and investors should avoid directly trading in them unless they have the expertise. This is a good sign, though one can never predict how long the strength of the Indian rupee will continue. The Indian currency tends to gain against other world currencies when the fundamentals, particularly the trade deficit and the current account deficit improved.
This is because we are increasingly seeing India's economic fundamentals fast improving.
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