V Appreciation of rupee means that there is

increase in value of rupee in global

market or in simple terms rupee has
become stronger than before in global
market.
V epreciation of rupee means that there is
a reduction in value of rupee in global
market or the rupee has become weaker
than before in global market.
V uo control inflation.
V uo reduce production cost.
V Reduce foreign debt.
V Cheaper imported goods.
V `orexreserve.
V Major export dependent.
V A meant against job lossess.
V i
hen India became member of IM` Rupee tied
to pound.
V i September, i
 Pound devalued; India maintained
par with pound.
V 6 June, i 66 Rupee is devalued, Rs.
.6 = $i after
devaluation Rs..50 = $i 5.5%.
V i November, i 6 UK devalued pound, India did not
devalued.
V August i i Rupee pegged to gold/dollar,
International financial crisis.
V i ecember, i i ollar is devalued.
V 20 ecember, i i Rupee is pegged to pound sterling
again.
V i ii   uhe rupee is overvalued due to India·s
policy of import substitution.
V 23 June, i 2 UK float pound, India maintains
fixed exchange rate with pound.
V i 5 India links rupee with basket of currencies
of major trading partners. Although the basket
was periodically altered, the link was maintained
until the i i devaluation.
V July i i Rupee devalued by ii %.
V March i 2 ual exchange rate, LERMS,
Liberalized Exchange Rate Management System.
V March i 3 Unified exchange rate $i = Rs.3i.3
Vi 3/i
 Rupee is made freely convertible for
trading but not for investment purposes.
Ö
 
 

  


i 0 .56
i 5 .
0
i 0 .
i 5 i2.36
i 0 i.50

i 5 32.
2
2000
5.000
2006
.336
200oct 3.

200june
2.5i
200oct
.
200 oct
6.3
20i0jan
6.2i
V ollar selling or buying by exporter and
corporate
V Global price of crude oil
V Capital inflow and outflow
V Reserve bank
V ollar weakness and strengthening
against other currencies
V Untilthe 0·s and 0·s India aimed to be
self reliant by concentrating more on
imports and allowing very little export to
cover import cost. However, this could not
be last long the oil price rise in the i 0
and 0s created a big gap in India·s
Balance of Payment. uhis gap widened
during Iraq·s attempt to take over Kuwait.
V uhereafter, exportsalso contributed to `
reserve along with the `I into the Indian
economy and reduced BOP gap.
SUBMIuuE uO SUBMIuuE BY
ANAN MOI ABHIJEEu SINHA
MBA`u VI SEMESuER
ROLL NO. 0i