Exchange rate
Also called: rupee exchange rate, currency exchange rate, rupee depreciation
The price of one currency in terms of another, such as rupees per US dollar.
If it takes more rupees to buy a dollar, the rupee has weakened. Exchange rates are moved by interest rate and inflation differences, trade and current account balances, capital flows, risk appetite and central bank action. A weaker rupee helps exporters and hurts importers and companies with foreign-currency debt.
Example
From ₹80 to ₹84 per dollar, the dollar rises 5% and the rupee falls about 4.8%.
Learn more in these lessons
- Currency movements and the rupeeWhat moves the rupee, and which companies win or lose when it changes?
- Foreign investment flowsDo foreign investors move the Indian market, and should you follow them?
Related terms
Spotted a mistake or something unclear? Report it by email. Here is how corrections work.