NEW DELHI: The rupee debuted on Tuesday. The rupee strengthened 8 paise, to 69.83 against the dollar. The rupee weakened 10 paise, to close at 69.90 against the dollar on Monday.
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This is how the rupee strengthens.
At the same time, the US dollar enjoys a global currency status. This means that most of the goods that are exported are paid in dollars. This is the reason why the value of the rupee against the dollar shows that the Indian currency is strong or weak. The US dollar is considered a global currency because most countries in the world use it in international trade. This is easily acceptable in most places.
This is how the demand meets
As per the information received from the sources, the price of the rupee depends entirely on its demand and supply. It also has an impact on imports and exports. In fact, each country has a reserves of currency from other countries, making transactions. This is called foreign exchange reserves. From time to time, the data is released from the Reserve Bank. It is only with the decline and increase in the foreign exchange reserves that the currency of that country is affected.
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