JONLEN J.R.DESA

M.COM-II (BM) R/M.COM-11-06

Exchange Rate & Types Factors Influencing Exchange Rate Foreign Exchange Currency Appreciation & Depreciation of Currency Top 5 Currencies Indian Rupee vs Global Currency- Analysis Conclusion

Exchange Rate is the price for foreign money. It is defined as the price paid in the home currency for a

unit of foreign currency.

2 Quotes: Indirect Quote-1 unit of foreign currency to a number

of units of domestic currency. 1 Rs=$ 0.02 Direct Quote- A certain number of units of foreign

currency to 1 unit of domestic currency. 1$=55 Rs

Types of Foreign Exchange Rate

Impact of Inflation & Deflation Trends in the balance of trade Government Budget Changes in Interest rate Economic Growth Speculation Creditor vs Debtor Nations Stock Market Operations Demand & Supply for Foreign Exchange

The exchange of one currency for another, or the conversion of one currency into another currency.

Appreciation- An increase in the value of the domestic currency with respect to the foreign currency.

Importers gain from Appreciation of Domestic currency & loose when it depreciates.

Depreciation- A decrease in the value of the domestic currency with respect to the foreign currency.

Exporters loose from appreciation and gain from depreciation.

TOP 5 CURRENCIES

Indian Rupee v/s Global Currencies- Analysis

Month DateForecast

Value50%Correct +/- 80%Correct +/-

0 Jul 2012 55.42 0.0 0.0

1 Aug 2012 55.7 0.4 0.9

2 Sep 2012 55.9 0.5 1.2

3 Oct 2012 54.1 0.6 1.3

4 Nov 2012 52.4 0.7 1.5

5 Dec 2012 52.7 0.7 1.6

6 Jan 2013 53.3 0.8 1.7

India Rupee per U.S. Dollar Currency Exchange ForecastIndian Rupee per One United States Dollar. Average of Month.

CONCLUSION

International Business Envt- P. Subba Rao

International Economics-D. M. Mithani

B. Economics-Dr. Deepali Karmali

International Business- K. Aswathappahttp://www.forecasts.org/exchange-rate/india-rupee-exchangerate.htm

http://www.rbi.org.in/scripts/PublicationsView.aspx?id=13795

http://www.investopedia.com/terms/e/exchangerate.asp

http://www.federalreserve.gov/releases/h10/current/