US $ against Indian Rupee Portal
Usd Vs Inr
The Indian rupee (INR)
The Indian Rupee is the Republic of India’s official currency. It is one of the oldest currencies in the world with its history strolling back to over 2,000 years ago. In the British India, it was used in many different forms. After India attained independence from the British, it was adopted as the national currency.
The US dollar
The U.S. dollar is the official currency of the United States of America and it is the currency in which most of the other currencies of the world are pegged against. The USD Vs INR is aimed at comparing the value of the Indian Rupee as against the US dollar.
The Indian rupee is a floating currency…
Because the Indian rupee, like most other currencies is a floating currency, its rate of exchange with the United States dollar keeps on fluctuating up and down day by day. According to businessdictionary.com, a floating currency is a currency that has floating exchange rate.
The floating exchange rate refers to that system in which the value of the currency is solely determined y the interaction of the market forces of the supply and demand. This means that the USD Vs INR exchange rate is directly influenced by the economic events in the country instead of the direct Indian government intervention.
This notwithstanding, the Reserve Bank of India formulates various polices in order to defend the USD Vs INR rates within a certain range. The Reserve Bank does this through the buying and selling of the Indian rupees the way the different situations warrant. The exchange rate of these two currencies may also vary depending on how and where the exchange has been made.
The stable Indian economy has fairly stabilized the value of the rupee
Because of the rapid growth of Indian economy, the rupee is becoming one of the important global currencies although it is not at the moment highly exchanged in large volumes in the international currency markets like the US dollar. The USD Vs INR as stated earlier floats or changes depending on the rules that the Reserve Bank of India has set down. In the recent past however, the value of the rupee has been moderately stable. For example, the USD Vs INR rate was 45.3 rupees to one U.S. dollar. In 2010, the rate was averagely 46.13 rupees to one U.S. dollar.
The USD Vs INR Electronic exchanges
While in India, the foreign travelers have two major options in which they can electronically exchange US dollars for the Indian Rupees. The first option is withdrawing the rupees at an ATM that has access to bank account that is dollar –denominated. You can find the ATMs in the bigger Indian cities although some strategic smaller places have ATM locations.
The USD Vs INR exchange rate in that transaction varies depending on the quoted bank exchanges rates which may vary from one bank to the other. Most banks also charge a certain fee for such exchange transaction. It is also not very easy to use the credit cards that are dollar –based in most parts of India. Like the ATMs, the charge of the credit card takes the advantage of the particular bank rate and some fee is usually charged for the transaction.
The USD Vs INR cash exchanges
If you have US dollars in liquid cash, you can exchange them over the counter for Indian rupees in most banks. There are also many other private money changers. Although the private money changers do not in most cases charge fees the way most banks do, they offer generally lower rate the exchange rates the are credit card or ATM based.
You need to check the notes that you have exchanged for dollars in order to ensure that they are genuine and clean. To know whether the note is genuine you need to hold it against light and you will see security features such as watermark, security thread, microlettering, identification mark, eurion constellation, optically-variable ink, latent image, intaglio, fluorescence and see-through register. Dirty and ripped notes may be rejected in some places. The Rupee notes are available in the denominations of 1000, 500, 100, 50, 20 and 10.
The USD Vs INR conversion websites
There are various online websites that offer free USD Vs INR conversion rates. Some of these include advfn.com, x-rates.com and xe.com. These currency conversion websites compare one particular currency to the other. The www.dollar2rupee.net is preferred bay most traders, investors and travelers because it compares the rates of international remittance at various money-wiring and banking transaction services and also at some news websites such as the hindu.com.
In general, the money changers and banks offer the retails customers a USD Vs INR that is less advantageous as compared to online quoted bank rates. The lowest rates are offered at the banks and entertainments places that offer currency exchange services.
Usd Vs Inr
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Rupee Exchange Rate
Rupee Exchange Rate News
Because of the necessity of trade between countries, currency exchange rates are very important in the level of competitiveness of a country. Because almost any independent country ( except those within money union such as in Europe), has its own currency, the value in which a currency can be traded against the other is important. The rupee exchange rate determines the amount of money that a person will be paid for imports out of India as well as the amount of money that one pays for exports in to India.
Devaluation of Indian rupees means that you will have to pay more in order to buy goods from another country. The strengthening of the rupee will mean that you can import products in to country at stable prices. Because of the very many factors that come in to play, the rupee exchange rate is influenced by different mechanisms among them the market forces and to some extent government intervention through the Reserve Bank policies.
The rupee exchange rate is determined and influenced by the free interaction of the market forces of the demand and supply. The Reserve bank of India only intervenes in order to maintain the low volatility of the exchange rates. It may at times buy or sell rupees in order to ensure that the exchange rates are not very highly volatile. Because of the Reserve Bank interventions and many other factors, the rupee exchange rate has remained fairly stable in the last couple of months and years. It slowly fluctuates upwards and downwards depending on many different factors. The value of the currency in India like in any other country of the world is influenced by many different factors such as the balance of trade, level of investment, political stability, inflation, etc.
The rupee exchange rate against the major currencies of the world has remained fairly stable. This is mainly because of the stable Indian political system and the consistent economic growth of the republic. For the years 1996, 2000, 2004, 2006, 2009, 2010 and 2011 the rupee exchange rate against the US dollar has been 35.444, 44.952, 45.340, 43.954, 48.76112, 45.3354 and 55 respectively. As against the Euro, the rupee exchange rate for the years 1996, 2000, 2004, 2006, 2009, 2010 and 2011 was 44.401, 41.525, 56.385, 64.127, 68.03312, 60.5973 and 65.6987 respectively.
The latest spot rupee exchange rate against the United States dollar shows it appreciated 1.8100 (3.25%) in may 2012. By having a look at the exchange rates from the year 1973 until the year 2012, the USD/INR averaged 30.6800. INR is the official abbreviation code for the Indian rupee. The USD/INR exchange reached its highest in May 2012 when it averaged 56.2400. Its record low was in March 1973 when it traded at 7.1900. The spot exchange rate basically shows how much particular currency (in this case the USD) is worth in terms of another (the Indian rupee). The spot exchange rate is exchanged and quoted on the same day. It is the opposite of forward rate that quoted today for purposes of payment or delivery on a particular future date.
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Brief Information about the Indian Rupee
About the Indian rupee
The Indian rupee is the official currency that is used as the legal tender in India, Republic of. The issuance of the currency is regulated by the Reserve Bank of India. The official code of the currency is INR while the official sign is . The banknotes are available in the nominal values of 1000, 500, 100, 50, 20, 10 and 5. The coins are available in denominations of 10, 5, 2 and 1. A coin of 50 paise is also available. Since 30 June 2011, the rupee coins of value less than 50 paise are no longer a legal tender.
The history of the Indian rupee is long. It is one of the oldest currencies in the world. The exact day in which the rupee was introduced is not known but it is believed that it was introduced between 1486 and 1545…quite a long time ago, by Sher Shah Suri. At the time of the introduction, the value of the currency was paisa ( 40 pieces of copper) per one rupee. Outside India, the Indian rupee was at different times used as the official currency in Kenya, Tanzania (by then known as Tanganyika), Uganda, Mauritius, Seychelles, Kuwait, Aden, Qatar, Bahrain, Oman and Trucial States.
Historically, the Indian rupee was a coin made of silver. The name is derived from Sanskrit word raupya that means silver. The silver rupee suffered a major blow in the 19th century because most of the economies of the world were by then on the gold standard. After the discovery of silver in large quantities in the United States and in several other colonies in Europe, the value of the silver relative to the gold declined sharply. This resulted in the sharp decline of the Indian rupee. The devaluation of the silver made most countries to abandon it and adopt the gold. India however did not do so and it remained with the silver rupee currency until the late 20th century.
The convertibility of the rupee
Regarding the convertibility, the exchange rate of the Indian rupee is determined by the market forces but not the government. The Reserve bank of India however trades actively especially in the US dollar (USD)/ Indian rupee (INR) currency market in order to stabilize the rates of exchange. The exchange rate of the INR to the USD and some other major currencies is thereby de facto controlled by the Reserve bank of India. According to the objects of the Reserve bank, its intervention in the currency markets is solely and purposely aimed at maintaining low volatility in the rates of exchange BUT NOT the influencing of the Indian rupee direction or rate in is trading with other major currencies.
The convertibility of the Indian rupee is also affected by the custom regulations regarding the importing and exporting of currency in and out of India. According to regulations, the Indian nationals are allowed to import and export rupees not exceeding 7,500 at any particular time. In Nepal state, no one is allowed to possess rupee notes of the denominations of 500 or 1000.
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