{"id":7627,"date":"2020-04-23T16:25:01","date_gmt":"2020-04-23T10:55:01","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=7627"},"modified":"2020-04-23T16:25:01","modified_gmt":"2020-04-23T10:55:01","slug":"currency-exchange-rate","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/currency-exchange-rate\/","title":{"rendered":"Currency exchange rate"},"content":{"rendered":"<section class=\"hero-section\" data-type=\"type-1\" data-alignment=\"left\">\n<header class=\"entry-header\"><span style=\"color: #0000ff;\"><strong>Relevance: Prelims: Economy<\/strong><\/span><\/p>\n<p><strong>Why in news?<\/strong><\/p>\n<\/header>\n<\/section>\n<div class=\"entry-content\">\n<p>\u2022 The exchange rate of the rupee is an apt marker on the state of the Indian economy\u2019s competitiveness in the aftermath of economic disruption due to the spread of the novel coronavirus disease (COVID-19).<\/p>\n<p><b>About:<\/b><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/slideplayer.com\/slide\/1707354\/7\/images\/13\/Current+Exchange+Rate+Arrangements.jpg\" alt=\"The International Monetary System - ppt download\" \/><\/p>\n<p>\u2022 Essentially, a currency\u2019s exchange rate vis-a-vis another currency reflects the relative demand among the holders of the two currencies. This demand, in turn, depends on the relative demand for the goods and services of the two countries.<\/p>\n<p>\u2022 If the US dollar is stronger than the rupee, then it shows that the demand for dollars (by those holding rupees) is more than the demand for rupees (by those holding dollars).<\/p>\n<p>\u2022 The Reserve Bank of India tabulates the rupee\u2019s Nominal Effective Exchange Rate (NEER) in relation to the currencies of 36 trading partner countries.<\/p>\n<p>\u2022 This is a weighted index \u2014 that is, countries with which India trades more are given greater weight in the index.<\/p>\n<p>\u2022 A decrease in this index denotes depreciation in rupee\u2019s value; an increase reflects appreciation.<\/p>\n<p>\u2022<strong> The Real Effective Exchange Rate (REER) and is essentially an improvement over the NEER because it also takes into account the domestic inflation in the various economies.<\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/image.slidesharecdn.com\/rupeevsdollar-150403125529-conversion-gate01\/95\/rupee-vs-dollar-6-638.jpg?cb=1428065783\" alt=\"Rupee vs dollar\" \/><\/p>\n<\/div>\n<p><a href=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/04\/reer.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7628\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/04\/reer.jpg\" alt=\"\" width=\"638\" height=\"359\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/04\/reer.jpg 638w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/04\/reer-150x84.jpg 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/04\/reer-300x169.jpg 300w\" sizes=\"auto, (max-width: 638px) 100vw, 638px\" \/><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><a title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong> <\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims: Economy Why in news? \u2022 The exchange rate of the rupee is an apt marker on the state<\/p>\n","protected":false},"author":1,"featured_media":7214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,42,43,230,224],"tags":[392],"class_list":["post-7627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-indian-economy","category-quick-revision-prelims-economy","category-quick-revision-prelims","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=7627"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7627\/revisions"}],"predecessor-version":[{"id":7629,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/7627\/revisions\/7629"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/7214"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=7627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=7627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=7627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}