INR Vs.

USD: Why
so much of gap!
The INR and USD currencies have a significant gap due to various economic,
political, and global market dynamics. Explore the factors influencing the gap
and their impact.

Submitted By :
Ayush Srivastava
22052376
CSE-38
Factors Influencing the Gap
Economic Factors Political Factors Global Market
Dynamics
Factors such as inflation Government policies,
rates, interest rates, and political stability, and The demand for certain
economic growth impact the international relations can currencies, foreign
exchange rate between the influence the value of the INR investments, and overall
INR and USD. in relation to the USD. market sentiment play a role
in determining the INR-USD
exchange rate.
Impact of the Gap
1 Effects on 2 Impact on 3 Role in Trade
Imports and Indian Economy Relations with
Exports the United States
The exchange rate has
A wider INR-USD gap
implications for inflation, The INR-USD gap affects
affects the cost of
foreign investments, and the balance of trade
imported goods and
India's overall economic between India and the
influences the
stability and growth. United States, influencing
competitiveness of Indian
bilateral relations and
products in international
economic policies.
markets.
Possible Solutions and Measures
Implementing Currency
Controls
Explore the possibility of implementing
currency controls to manage the
exchange rate fluctuations and stabilize
the INR.
1 Strengthening the Indian
Economy
Discuss strategies to improve the Indian
2 economy, such as promoting domestic
production, reducing dependency on
imports, and enhancing competitiveness.
3
Encouraging Foreign
Investments
Highlight the importance of attracting
foreign investments and creating an
investor-friendly environment to
strengthen the INR.
Possible Solutions and Measures
1 Currency Exchange Strategies

Explore hedging strategies, currency derivatives, and risk

management techniques to mitigate the impact of the gap.

2 Government Interventions

Understand the role of central banks, government policies, and

interventions in managing exchange rates and stabilizing the gap.

3 Future Forecasts and Potential Outcomes

Discuss expert opinions, economic indicators, and possible scenarios to

predict the future direction of the INR-USD gap.
Conclusion
1 Recap of the Main 2 Importance of Understanding
Points Discussed the INR-USD Gap

Summarize the factors influencing the INR- Highlight the relevance of staying informed
USD gap, their impact, and possible solutions about currency fluctuations and their
to bridge the divide. implications on businesses, investments, and
the economy.