Inflation is a key factor that affects the value of the Indian rupee. When inflation is high, the value of the rupee depreciates.
1. Interest rates also impact the value of the rupee. Higher interest rates can lead to increased demand for the rupee, which can lead to its appreciation.
The current account deficit (CAD) measures the difference between a country's imports and exports. When the CAD is high
The GDP of a country is an important indicator of its economic strength. A higher GDP can lead to increased demand for the rupee
The policies implemented by the Indian government, such as taxation, subsidies, and trade policies, can impact the value of the rupee.
Foreign investments in India can impact the value of the rupee. When foreign investors invest in India, they need to buy Indian rupees
Political stability is an important factor that can impact the value of the rupee. When there is political instability, it can lead to a decrease in the value
International factors such as global trade tensions, geopolitical events, and economic crises in other countries can impact the value of the rupee.
The monetary policy of the Reserve Bank of India, such as changes in interest rates and monetary easing, can impact the value of the rupee.
The rupee's value is also influenced by currency trading in international markets. Traders and investors buy and sell currencies based on their expectations