A STUDY ON THE CAUSES OF FLUCTUATIONS IN THE EXCHANGE RATE OF INR VS USD

Introduction: Investors in all over world not only impacts the share market but the whole economic conditions of the country and it is observed that most investors started to believe that value Indian rupee will not be the same in world market as it is now. This is because of the fact that its value in comparison to the widely used currency in world dollar is decreasing consistently and therefore it is very important for the India to know and rectify the problems which causes it. This drop of value of rupee is from very long time (after independence of India) and so problems are seems to be chronic. People of India must be aware of this problem in order to minimize the problem. This subject of this Study is one of the efforts to generate a detailed report about this problem.

OBJECTIVES: To understand the macro economic determinants of exchange rates. To study the determination of exchange rate. To study the impact of dollar fluctuations in the Indian Economy.

To study the reasons for appreciation and depreciation of rupee. NEED FOR THE STUDY:
TO UNDERSTAND THE GLOBAL ECONOMIC POSITION OF A COUNTRY. TO KNOW THE MARKET MOVEMENTS, IN ORDER TO HAVE INVESTMENT DECISIONS

SCOPE:
THE STUDY IS CONFINED TO UNDERSTAND THE MACRO ECONOMIC ENVIRONMENT,FOREX RESERVES, BANK RATES AND GOVERNMENT POLICIES AND THEIR SYSTEM.

RESEARCH METHODOLOGY:
TYPE OF RESEARCH

: DESCRIPTIVE RESEARCH

DATA COLLECTION : THE STUDY IS CONFINED TO SECONDARY SOURCES LIKE PUBLISHED DATA , BOOKS AND WEBSITES etc., SAMPLE SIZE : 06 VARIABLES ( RESERVES, REAL GDP, EXPORTS, IMPORTS,INFLATION AND UN-EMPLOYMENT) DATA ANALYSIS TOOL : CORRELATION AND REGRESSION.