We consider in this project India to be the emerging economy so we will discuss how the currency of India i.e. Rupee has been affected against U.S. dollar during five years ending on 2010.
Definition of Exchange arte
First, we will discuss about the exchange rate. It is the rate between two currencies where one currency is exchanged against another currency.An exchange rate can be either floating or fixed. The floating exchange rate is determined by market forces but the fixed exchange rate is fixed at a specific rate by the government (Dornbush,503)
Effect on Indian Rupee
Since, Indian rupee went through a lot of pressures ...
