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


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


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

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


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

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...

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