NAME: M.

MADHU
CLASS: B.COM (HONOURS)
ROLL NO: 107217407082

A COMPARATIVE STUDY ON INDIAS EXCHANGE RATE

FLUCTUATIONS WITH NEER & REER

INTRODUCTION:

The exchange rate volatility refers to the tendency for foreign currencies to
appreciate or depreciate in the value, thus affecting the profitability of trades .Nominal Effective
Exchange Rate (NEER) is the weighted average of bilateral nominal exchange rates of the home
currency in terms of foreign currencies .Real Effective Exchange Rate (REER) is the weighted
average of nominal exchange rates adjusted for relative price differential between the domestic
and foreign countries .The main purpose of this study is to conclude that the exchange rate
fluctuations and NEER/REER values will affect the exports of India .

NEED FOR THE STUDY:

This study was conducted to investigate the gap between the exchange rates and
NEER/REER values which may lead to the increase or decrease in the country’s exports.

OBJECTIVES:

 To study the exchange rate volatility of Indian currency in comparison with

NEER/REER.
 To examine if there is any effect on the India’s exports in terms of NEER/REER.

SCOPE:

The scope of this study is restricted to the exchange rate fluctuations,

NEER/REER and exports of India.

METHODOLOGY / DATA COLLECTION:

 The data collected is on the India’s exchange rate fluctuations, NEER/REER
values and exports.

SECONDARY DATA:

The data used in this study is all secondary data and is collected from various
sources which are for the past five years.

(Dr. Uma Jayender)

PROJECT GUIDE

(Mrs. N. Padmalatha) (Dr. k. Sreelatha Reddy)

PROJECT CO-ORDINATOR HEAD DEPT. OF COMMERCE