Cryptocurrency Q&A
Does Indian rupee have a market-determined exchange rate?
Does Indian rupee have a market-determined exchange rate?
SakuraBlooming
Thu Aug 08 2024
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5 answers
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Could you clarify if the Indian rupee's exchange rate is indeed market-determined? I'm curious to understand if the global forces of supply and demand, as well as economic indicators and investor sentiment, play a pivotal role in shaping its value against other currencies. Or does the Indian government or central bank have a significant influence in determining its exchange rate? It's essential to understand the dynamics behind the Indian rupee's exchange rate for investors, traders, and policymakers alike.
5 answers
Lucia
Sat Aug 10 2024
The Indian rupee operates within a unique framework in terms of its exchange rate dynamics.
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Stefano
Fri Aug 09 2024
While it is officially stated that the Indian rupee's exchange rate is market-determined, there are underlying factors that influence its valuation.
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EnchantedSoul
Fri Aug 09 2024
The Reserve Bank of India, as the central bank, actively engages in trading activities in the USD/INR currency market.
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CryptoPioneerGuard
Fri Aug 09 2024
Through its interventions, the RBI aims to impact the effective exchange rates of the Indian rupee, thereby exerting a degree of control over its valuation.
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Dreamchaser
Fri Aug 09 2024
This practice essentially translates into a de facto controlled exchange rate system for the Indian rupee when paired against the US dollar.
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