Download - INDIAN RUPEE
A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services.
6th Century of B.C India was the one of the first issuer of coins. first
Indian coins are Punch Marked Coins (Pana).
During Mauray Empire Rupyarupa, Suvarnarupa, Tamararupa introduced
by Chandragupta Maurya in B.C 340
During the Mughal period
In the year 1540 a silver coin called Rupiya
was introduced by sher shah suri and this remind in use up to the early
period of 20th century.
Introduced Paper note In 1770’s
by Bank of Hindustan and General Bank of
Bengal and Bihar, and the Bengal Bank.
Coins of British India
The British presence in India started in 1612 and established East
India Company(EIC).
Britten categorized their Indian colonies as Madras
Presidency, Bombay Presidency, and Bengal Presidency, and each
Presidency had a separate coinage and monetary system.
In 1835, the EIC adopted a unified system of coinage throughout
India.
In 1862 the Victoria Portrait series of notes was issued and it
remained in use for approximately 50 years.
Reserve Bank of India
RBI was formally inaugurated on April 1, 1935
The bank issued the first five rupee note bearing the portrait of George VI in 1938.
The first Reserve Bank issues were signed by the second Governor, Sir James Taylor.
The value of Rupee is differentiated from the currency of other
nations.
When an Indian doing international trade he need to convert
Rupee to their currencies for make payment
For this purpose the concept of foreign exchange come into
operation.
The conversion of one country's currency into another currency.
It is the minimum number of units of one countries currency required to purchase one unit of the other countries currency.
Under the system of international payments done through FOREIGN EXCHANGE MARKET.
It is the place were foreign moneys were bought and sold.
Year
Exchange rate (INR per USD)
1948 3.31
1975 8.39
1985 12.38
1995 32.427
2005 43.47
2007 39.42
2011(Sep) 48.24
2011 (Nov) 55.39
2012 (June) 57.15
2013 (May) 54.73
2013 (Sep) 62.92
2014 (Dec) 63.30
Like any other commodity the value of Rupee is also
determined by its demand & supply. the other factors are as
follows:-
Balance of Trade
Differentials in Inflation
Interest Rate
Public Debt
Political Stability and Economic Performance
Price of Oil & gold.
It is the relationship between imports and exports of a country.
If a country’s exports is more than its imports(Trade surplus) that appreciates the value of its currency. and may be depreciates when imports is more than its exports(Trade deficits)
An Increase in the general level of prices in the country that
is sustained over a period of time.
When demand is more than supply or increase the cost of
production , natural calamities etc. that's may lead to
inflation. inflation reduce the purchasing power of people.
Inflation rates in India is higher than rates in other countries,
this will increase imports reduce exports.
Interest rates influence the return or yield on bonds. bonds
of Indian companies can by only in Rupee
a high interest rate in India . will create demand for Rupee
in which to purchase those bonds
higher interest rates attract foreign capital and cause the
exchange rate to rise
Countries will engage in large-scale deficit financing to pay for public sector projects and governmental funding.
While such activity stimulates the domestic economy
nations with large public deficits and debts are less attractive to foreign investors.
Foreign investors inevitably seek out stable countries with
strong economic performance in which to invest their capital,
and the flow of foreign money increase the value of Rupee
Price of Oil & Gold
A large portion of India’s import payment is
mainly for payment of oil and gold. Their for any variation its
price will directly affect the Rupee.
Rupee appreciation against US dollar is a signal of the strengthening of Indian economy with respect to US economy.
Rupee Appreciation Rupee Depreciation
Import become Cheaper
hence they have gain.
Import become
costlier hence they
have loss
fall in export realization
to the extent of forex
difference hence they face
loss.
Realization from
exports increase. Hence
they have gain.
Importers
Exporters
When foreign investors invest in Indian stock market,
They can earn profit if Rupee appreciates.
They make a loss if Rupee depreciates.