THE PRESENTATION IS ALL ABOUT FOREIGN EXCHANGE WITH AN INTRODUCTION TO IT. IT ALSO CONTAINS SLIDES WHICH SHOWS THE DETERMINATION OF FOREIGN EXCHANGE RATE. IT ALSO CONTAINS THE CAUSES OF DEMAND FOR FOREIGN EXCHANGE AND SUPPLY OF FOREIGN EXCHANGE IN OUR COUNTRY. ADDED TO IT IS THE LAST 5 YEAR DATA ALONG WITH THE MEASURES TO CONTROL THE EXCHANGE RATE.

1. DOLLAR RATE
By: SHUBHAM BAGARIA
DIPEN WAGHELA
ANUJ MURARKA
VIPUL MATHUR

2. INTRODUCTION
 The U.S. dollar is a fiat money. It is
the currency most used in international
transactions and is the world's most
dominant reserve currency.
 Several countries use it as their official currency,
and in many others it is the de facto currency.
 One implication of the dollar rate is that when
Dollar($) appreciates then Rupee depreciates, and
vice versa.

3. RUPEE-DOLLAR PARITY (1947)
 When India achieved Independence in 1947, there
were no external borrowings on India’s Balance
Sheet therefore the Exchange Rate as on 15th
August 1947 was 1Dollar=1Rupee.
DEVALUATION DURING 1970’s
 In the Year 1966 under the Reign of Indira Gandhi,
Inflation was on its peak. At this time India was
under immense pressure from U.S to devalue
Rupee to safeguard the aid received by India from
U.S.
 As a result, Rupee was devalued to
1Dollar=7Rupees.

4. DETERMINATION OF EXCHANGE RATE

5. CAUSES OF DEMAND FOR DOLLAR
 PAYMENT OF LOANS TO THE REST OF THE WORLD
 GIFTS AND GRANTS TO THE REST OF WORLD
 INVESTMENT IN THE REST OF WORLD
 DIRECT PURCHASES FROM THE REST OF WORLD
 SPECULATIVE TRADE IN THE REST OF WORLD

6. CAUSES OF SUPPLY OF DOLLAR
 EXPORTS OF OUR COUNTRY TO THE REST OF
WORLD
 MONEY SPENT BY TOURISTS IN OUR COUNTRY
 FOREIGN DIRECT INVESTMENT
 SPECULATIVE TRADE IN OUR COUNTRY
 REMITTANCES BY NRI’s IN REST OF WORLD

7. LAST 5 YEARS GRAPHICAL DATA

8. LAST 5 YEARS STATISTICAL DATA
 In the last 5 years, Rupee was found to be on a all
time low of 44.29 on 14th April 2010.
 It was also observed that Rupee was on its peak of
68.978 on 28th August 2013.

9. REASONS FOR EXCHANGE RATE
FLUCTUATIONS

10. MEASURES THAT COULD BE TAKEN TO
CONTROL EXCHANGE RATE

11. LET’S SUM UP
- Dollar has been widely accepted in many countries
in the world.
- Dollar rate has been rising significantly since
independence
- -The current political stability has attracted many
FIIs
- -Foreign Investment in stock market has also
- increased leading to fall in dollar rate
- -RBI has laid down many policies to curb rupee fall