BrahMos WORLD INDIA MADHYA PRADESH BHOPAL WTN SPECIAL Astrology GOSSIP CORNER SPORTS BUSINESS FUN FACTS ENTERTAINMENT LIFESTYLE TRAVEL ART & LITERATURE SCIENCE & TECHNOLOGY HEALTH EDUCATION DIASPORA OPINION & INTERVIEW RECIPES DRINKS FUNNY VIDEOS VIRAL ON WEB PICTURE STORIES
WTN HINDI ABOUT US PRIVACY POLICY SITEMAP CONTACT US
logo
Breaking News

Indian Rupee ranks in top 5 against the US dollar despite being weak

Sunday - February 23, 2020 4:29 pm , Category : BUSINESS
Rupee comes in fourth place in the strength against dollar
Rupee comes in fourth place in the strength against dollar

Indian currency rupee shows its strength even amid the global economic slowdown

FEB 23 (WTN) - Many times in the news you must have heard and read about the relationship between India's currency rupee and US currency dollar. But most of you may not know that what is the measure of strength and weakness between the currencies of the two countries? Let us tell you this in detail today. First of all, for your information, let us know that the Indian rupee has become the best-performing currency in the emerging economies of the world against the US dollar. However, the Indian rupee has weakened by 0.37 percent against the US dollar in the year 2020.

According to the data released by a report, the currency peso of the Latin American country Mexico remains at the top against the US dollar. Let us know that the currency peso of Mexico has strengthened by 1.2 percent this year. At the same time, Indonesia currency rupiah is on the second number, which has become 0.84 percent stronger this year. The currency of Philippines peso is at number three on this list. The currency peso of the Philippines has strengthened by 0.12 percent against the US dollar. At the same time, the fourth number in this order is India's currency rupee. However, the rupee has weakened 0.37 percent this year. 

China's currency Yuan is at number five on this list. Explain that, like India, China's currency has weakened against the US dollar. In the New Year 2020, the Yuan has weakened 0.87 percent against the dollar. The lowest performing currency in the world is Brazilian Real. Let us know that in the year 2020, the Brazilian rial has weakened more than 8 percent against the US dollar. 

Now, you must be wondering that why the currency of a country is compared in US dollars only? On the other hand, what does it mean for a country's currency to be stronger or weaker than the dollar? So let us tell you about it in detail. Actually, most of the international trade in the world is done in US dollars. For this reason, the strength of the currency of countries all over the world is compared to the US dollar. Talk about India's currency, then the value of the rupee depends entirely on import, export, demand, and supply.

At the same time, as you may know, every country has reserves of currency of other countries, which is called foreign exchange reserves. This money reserve is used in import-export. Now understand that there is a trade deal between India and America. Suppose America currently has 71,000 rupees, and India has $ 1,000. If at the time of trade deal, India's currency rupee is 71 rupees compared to US dollar, then in this situation both countries have equal amount.

Now if there is a deal between India and the US, and the price of this deal is 7,100 rupees according to India's currency, then India will have to pay $ 100 for this deal. Now that India will deal with the US by paying 100 dollars, then only 900 dollars will be left in India's foreign exchange reserves. At the same time, the US has only 71,000 rupees; along with the foreign exchange reserves of India will also reach the US $ 100. At the same time, if America buys goods from India for $ 100, then India's foreign exchange reserves will increase to $ 1,100. It is clear that the more the country that exports, the stronger the currency of that country gets. 

As we told you that in the international market most of the deals are done in US dollars, then it is necessary for the concerned country to have a large amount of US dollars to get the goods from abroad. Now, for more American dollars, the country has to import more to the US and other countries. Explain that the entire responsibility of ensuring the supply of dollars rests with the Central Bank of India, which is the Reserve Bank of India. Explain that the Reserve Bank ensures the supply of dollars in the market by purchasing from its reserves and abroad. Now that the rupee has performed well against the US dollar, the Reserve Bank of India can take advantage of this opportunity. Because the Reserve Bank can increase its dollar reserves during this period, this will reduce the possibility of inflation in future.