By MOFSL
2020-02-04T11:08:06.000Z
6 mins read
How domestic factors influence the value of the Rupee
motilal-oswal:tags/currency-trading-in-india,motilal-oswal:tags/currency-trading,motilal-oswal:tags/forex-trading,motilal-oswal:tags/currency-trading-market
2023-09-13T10:55:52.000Z

Rupee Dollar Rate

Like any currency, the Indian Rupee is also a reflection of the fundamental strength or otherwise of the Indian economy. Over a longer period of time, the INR has weakened against the US Dollar, but in the shorter term the INR is impacted by a lot of technical factors and demand/supply actors. Let us look at the 5-year chart of the Indian rupee vis-a-vis the US Dollar.

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1.  Rate of retail inflation (CPI) in India


2.  The real rate of interest in the economy
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3.  Seasonal dollar demand from importers and banks
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4.  Fundamental fiscal and trade related factors


5.  Government intervention still plays a key role in the value of the rupee

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