What are the factors influencing the dollar to rupee exchange rate on Yahoo Finance?

3 answers

• Nov 23, 2021 · 3 years ago
  The exchange rate between the US dollar and the Indian rupee on Yahoo Finance is influenced by several factors. One of the main factors is the interest rate differential between the two countries. When the interest rates in the US are higher than in India, it attracts foreign investors who want to earn higher returns on their investments. This increases the demand for the US dollar and leads to an appreciation of the dollar against the rupee. On the other hand, when the interest rates in India are higher, it attracts foreign investors and leads to an appreciation of the rupee against the dollar. Another factor that affects the exchange rate is the balance of trade between the two countries. If India exports more goods and services to the US than it imports, it creates a demand for the rupee, which leads to an appreciation of the rupee against the dollar. Conversely, if India imports more than it exports, it creates a demand for the US dollar and leads to a depreciation of the rupee. Political and economic stability also play a role in determining the exchange rate. If there is political instability or economic uncertainty in India, it can lead to a depreciation of the rupee. Similarly, if there is instability in the US, it can lead to a depreciation of the dollar. Other factors such as inflation, monetary policy, and market sentiment can also influence the exchange rate. Overall, the exchange rate between the US dollar and the Indian rupee on Yahoo Finance is influenced by a combination of economic, political, and market factors. It is important to keep track of these factors to understand and predict the fluctuations in the exchange rate.
  1670835
• Nov 23, 2021 · 3 years ago
  Well, let me break it down for you. The exchange rate between the US dollar and the Indian rupee on Yahoo Finance is affected by a number of factors. One of the main factors is the interest rate differential between the two countries. When the interest rates in the US are higher, it attracts foreign investors who want to take advantage of the higher returns. This increases the demand for the US dollar and leads to an appreciation of the dollar against the rupee. On the other hand, when the interest rates in India are higher, it attracts foreign investors and leads to an appreciation of the rupee against the dollar. Another factor that plays a role is the balance of trade between the two countries. If India exports more goods and services to the US than it imports, it creates a demand for the rupee, which leads to an appreciation of the rupee against the dollar. Conversely, if India imports more than it exports, it creates a demand for the US dollar and leads to a depreciation of the rupee. Political and economic stability also have an impact on the exchange rate. If there is political instability or economic uncertainty in India, it can lead to a depreciation of the rupee. Similarly, if there is instability in the US, it can lead to a depreciation of the dollar. Other factors such as inflation, monetary policy, and market sentiment can also influence the exchange rate. So, as you can see, the exchange rate between the US dollar and the Indian rupee on Yahoo Finance is influenced by a variety of factors. It's important to keep an eye on these factors to understand why the exchange rate fluctuates.
  1626542
• Nov 23, 2021 · 3 years ago
  The exchange rate between the US dollar and the Indian rupee on Yahoo Finance is influenced by a range of factors. Interest rates, inflation, economic growth, political stability, and market sentiment all play a role in determining the exchange rate. Firstly, the interest rate differential between the US and India affects the exchange rate. When the interest rates in the US are higher, it attracts foreign investors who want to earn higher returns on their investments. This increases the demand for the US dollar and leads to an appreciation of the dollar against the rupee. Conversely, when the interest rates in India are higher, it attracts foreign investors and leads to an appreciation of the rupee against the dollar. Inflation also affects the exchange rate. If the inflation rate in India is higher than in the US, it erodes the value of the rupee and leads to a depreciation against the dollar. On the other hand, if the inflation rate in India is lower, it strengthens the rupee against the dollar. Economic growth and political stability are important factors as well. When a country experiences strong economic growth and political stability, it attracts foreign investment and strengthens its currency. Conversely, if there are concerns about the economy or political instability, it can lead to a depreciation of the currency. Market sentiment, which is influenced by factors such as investor confidence and risk appetite, also plays a role in determining the exchange rate. If investors have a positive outlook on the Indian economy, it can lead to an appreciation of the rupee. Conversely, if there are concerns or uncertainties, it can lead to a depreciation of the rupee. In conclusion, the exchange rate between the US dollar and the Indian rupee on Yahoo Finance is influenced by a combination of factors including interest rates, inflation, economic growth, political stability, and market sentiment. It's important to consider these factors when analyzing and predicting the exchange rate.
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