A Study On The Impact Of Global Currency Fluctuations With A Special Focus To Indian Rupee

4158 words - 17 pages

A study on the impact of Global Currency Fluctuations. A special focus to Indian Rupee.

Title of the Industry Assignment
A study on the impact of Global Currency Fluctuations. A special focus to Indian Rupee.

Key Words
FII, CAD, QE, Currency Swap, FCNR, CPI, Repo Rate, Tequila Crisis, ETF, Hedge

Executive Summary
The paper discusses about the factors influencing and impact of currency fluctuations on global economy. Then we shift our focus to Indian rupees factors which causes the Rupee fluctuations has been discussed. In the end we discuss about the steps taken by the RBI and the government and what else can be done by investors to lessen the impact of Global currency ...view middle of the document...

5 Literature Review .......................................................................................................................................... 5 Analytical Interpretation on the topic .......................................................................................................... 7 Suggestions ................................................................................................................................................. 11 Conclusion ................................................................................................................................................... 12

1

A study on the impact of Global Currency Fluctuations. A special focus to Indian Rupee.

Exhibits

Exhibit 1
http://articles.economictimes.indiatimes.com/2013-06-21/news/40119665_1_weak-rupee-us-dollar-operating-margins

Exhibit 2
http://www2.blackrock.com/us/individual-investors/insight-education/global-investing/global-investing

2

A study on the impact of Global Currency Fluctuations. A special focus to Indian Rupee.

Exhibit 3
http://blogs.ft.com/beyond-brics/2013/01/14/chart-of-the-week-how-important-is-manufacturing-to-emerging-markets/#axzz2ccpgTM7t

Exhibit 4
http://www.eia.gov/countries/cab.cfm?fips=IN

3

A study on the impact of Global Currency Fluctuations. A special focus to Indian Rupee.

Figures

Table 1
http://www.resourceinvestor.com/2010/06/09/eurogold-currency-crisis-accelerates

Table 2
http://www.moneycontrol.com/stocks/marketstats/fii_dii_activity/

4

A study on the impact of Global Currency Fluctuations. A special focus to Indian Rupee.

Introduction
This study aims to explore the dynamics, factors influencing and impact of fluctuations in the currency. Currency fluctuations are simply the ongoing changes between the relative values of the currency issued by one country when compared to a different currency. These changes are something that occur every day and affect the relative rate of exchange between various currencies on a continual basis. It is these fluctuations that investors in currency exchange deals look to closely in order to generate a profit from their investments. Exchange rates are among the most monitored, analyzed and governmentally manipulated economic measures. Currency fluctuation also impacts the real return of an investor's portfolio, profitability of firms, and growth of specific sectors amongst various other determinants of the economy.

Literature Review
Exchange rate has fluctuated a lot from 1990-91.Indian rupee had fallen by almost 20% in this fiscal year. Fall in the value of rupee has induced exports to rise ahead of income. Imports have not been significantly affected by depreciating value of rupee, indicating positively sloped demand curve for imports. Results of decomposition model of export earnings and import bills show the pivotal role of change in exchange rate, though the quantitative dimension is relatively...

Other Papers Like A Study on the Impact of Global Currency Fluctuations with a Special Focus to Indian Rupee

Describe the Trends' in Exchange Rate of Rupee Vis-a-Vis the Major Currencies over the Last One Year. How Has It Effected the Indian Economy?

1046 words - 5 pages impact of such exchange rate fluctuations on the real effective exchange rate and the likely effects on the employment situation in the country. There are an array of factors affecting the exchange rate fluctuations like interest rate, balance of trade, money supply, economic growth, foreign debt, inflation etc. India has seen a huge breakdown of the Rupee because of the adverse affects of these factors on the Indian currency. Mentioned

A Focus on Charity Essay

706 words - 3 pages A focus on charity 1. The text “The advert that beggars belief” is about whether or not you should give money to beggars or not. First, it gives a view on how beggars are being looked at in India where they can earn a lot of money as it’s a part of their culture to give money to the beggars even though they are not rich themselves. The text then turns to view on the British beggars, and how the government tries to stop the begging. The

Evaluate the Likely Result of a Change in Currency Prices on the Uk Economy

627 words - 3 pages appreciation will result in a larger fall in aggregate demand lead to rising unemployment. Yet if the economy is in boom, the appreciation of the currency will reduce inflationary pressures. A devaluation of the currency will lead to demand for exports increasing, as the devaluation makes the exports more competitive and cheaper. It also increases the price of imports, meaning the government may choose to focus on export led growth. Lower imports and

Explain the Ethical Teachings of Jesus with Special Reference to the Sermon on the Mount

1808 words - 8 pages Explain the ethical teachings of Jesus with special reference to the Sermon on the mount. Jesus of Nazareth was born a Jew. He was raised in the Jewish faith, as both his parents were Jewish, and some theologians would argue that Jesus never taught anything that was against the Jewish faith, and was just another new thinking Rabbi. The understand Jesus’ teachings, however, it is fundamental to have a comprehension of the Jewish way of like, and

Impact Of The Agreemond On Agriculture On The Indian Economy

1106 words - 5 pages , therefore, relate to (a) market access; (b) domestic subsidy or domestic support; and (C)export subsidy IMPACT OF THE AGREEMENT ON AGRICULTURE ON INDIAN AGRICULTUTRE Indian agriculture enjoys the advantage of cheap labour. Therefore, despite the lower productivity, a comparison with world prices of agricultural commodities would reveal that domestic prices in India are considerably less with the exceptions of a few commodities (notably

Celta Focus on a Learner

1090 words - 5 pages Background The learner I decided to focus on for this assignment is Lydia. Lydia is from China and her first language is Mandarin. She first learnt English in school back in China when she was a young girl. She talked about how, when she was younger it was mandatory to learn English in school but now it is not. I also found out in the interview with Lydia that she taught English when she lived in Singapore. I was very impressed when she told

Rupee Depreciation- Why Is It Depreciating? Describe the Impact on India’s Macroeconomics

739 words - 3 pages Rupee Depreciation- Why is it depreciating? Describe the impact on India’s Macroeconomics. The depreciation of rupee against the dollar is not a recent phenomenon. If we see the valuation of rupee over the past six decades, i.e., post-independence, we can see a continuous downward trend. Though there have been temporary fluctuations in the value, the general trend has been negative. To find the root cause of this phenomenon we need to go 200

The Gaze Experiment: a Study of Gazing Habits and Biases with Respect to Different Facial Features

2257 words - 10 pages The Gaze Experiment: A study of gazing habits and biases with respect to different facial features. AbstractCan we tell which part of our face a person is gazing at when they are gazing at us? The experiment in question gives us an idea to where and why we think a person is looking at that location. There were 27 students split into pairs. Within the pair there was an experimenter and a participant. The experimenter would look at different

Impact of Ipo on Indian Economy

925 words - 4 pages -20 major economies and a member of BRICS. On a per capita income basis, India ranked 140th by nominal GDP and 129th by GDP (PPP) in 2011, according to the IMF. Currently the GDP of India worth 1.676$ trillion and the GDP growth rate was 6.5% for (fy) 2012. The Indian Equity market is divided in to two parts Primary market - where the share is first issued in the form of IPO (Initial Public Offering) and after issuing the share it is listed

How to Run a Focus Group

1300 words - 6 pages of views from your target audience, and to find out why people hold these views. A focus group can take place either before or after your event, depending on what you want to find out. For example, if you want to know what motivates your audience to attend an event you might choose to run a focus group before they have seen an event. However, if the information you need is about their opinions of the event itself, then you will obviously need to

How to Conduct a Focus Group

3358 words - 14 pages criteria should be established upfront and based on the purpose of the study. Use the criteria as a basis to screen all potential applicants. Focus groups participants can be recruited in any one of a number of ways. Some of the most popular include: Nomination – Key individuals nominate people they think would make good participants. Nominees are familiar with the topic, known for their ability to respectfully share their opinions, and willing to

Related Essays

Impact Of Global Economic Situation On The Indian Banking Industry.Doc

2825 words - 12 pages reduction in interest rates is expected to trigger the slowing demand and improve availability of capital to private sector. In this report we discuss the impact of these developments on Indian banking industry. We then discuss some of the long term growth drivers of the banking industry. A discussion on the relative impact of these factors concludes with a positive future outlook for the banks in the long term. Word Count: 150

Causes Of Erratic Oil Price Fluctuations On A Global Scale

1633 words - 7 pages fluctuations on oil prices can be attributed to the booming world economies. Given the fact that increase in demand without a corresponding increase in supply would drive prices up, the continued boom in various economies have increase the global oil prices (Butcher 45-77). For instance, the economic development characterized with industrialization has increased demand for sources of energy. In particular, the Asia has been the key contributor

Autobiography Of A Rupee Coin Essay

1006 words - 5 pages Manager of the mint moved us to the weighing machine. Weighing thousands of us at a time we were packed into boxes where we had no air to breathe. We were put into a train going south. After two days we reached Chennai and got deposited in a grand building called the Reserve Bank of India. Here again it was all dark, protected on all sides with armed guards guarding us all the time. We talked to one another, how valuable we were. Boxes before us

A Case Study Of Currency Crisis

1192 words - 5 pages A Case Study of Currency Crisis: The Russian Default of 1998 Background of Russia Russian Federation was formed in 1991. The country tried to maintain a fixed exchange rate however, Russia had a “fragile fiscal position”(Economic Report)  which turned unstable as the world markets changed. Up until 1997 Russia had slow but eventually a year of positive economic growth, at which point the country started to stumble. Russia launched a