The Indian rupee achieved its highest single-day gain since November of last year on Tuesday as it erased the psychological 82-mark against the American currency. Stop-order triggers and bond selling inflows have propelled the local unit to the top of its Asian peers.
The rupee has a lower value compared to the U.S. dollar. The exchange rate fluctuates based on various economic factors. The Reserve Bank of India (RBI) is the central bank of India and is responsible for maintaining the stability of the rupee. The Federal Reserve of the United States is the central bank of the United States, and is responsible for maintaining the stability of the U.S. dollar.
The rupee is affected by a number of factors, including economic growth and development, inflation, political stability, and interest rates. The U.S. dollar is similarly affected by economic growth and development, inflation, political stability, and interest rates.
India and the U.S have healthy trade relations, which makes their currency's demand in each other's country impact their exchange rate.
The currency value of Rupee is affected by balance of trade, trade deficit, FII, FDI, NRI remittance and other macroeconomic factors.
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