The value of currency changes with every change in market conditions. The value of the rupee in the international market may not remain the same after one week.
Some currencies are considered strong and some weak. There are many countries where the highest currency is not more than 20 or 30. And, in some countries, the official value of currency starts from 10,000 and beyond. You must know the value of the highest currency in the world to understand the concept of leading currencies. Indian currency may be weak compared to the U.S dollar but it stands strong compared to other countries. The value of a currency depends on conversion rates. If a particular country has a high conversion rate, then you can expect a higher value.
What are the factors that affect the Indian currency rate?
When you evaluate a country’s currency with Indian currency, you’ll be able to understand the situation. The top currencies in the world are – Dollar, Yen, Euro, and Pound. The rate of exchange for all these currencies changes depending on economic factors. The year 2020 was a tough year for the world economy due to Covid19. Even the strongest currency like the U.S dollar was badly hit. The U.S dollar has been the most expensive currency, but it was affected due to the global downfall. The exchange rates of currencies including the rupee matter to those people who trade currencies. Also, people who travel from one country to another know about the global patterns of rates. The inflation rate affects the value of the currency rate. If there is inflation, then the exchange value will change. Any imbalance in these factors directly affects the Indian currency.
Where Indian currency stands as compared to world currencies?
If the U.S dollar goes weak, then it also affects other currencies including the Indian rupee. Most companies who earn their money in dollars or pounds have to keep a tab on currency values. It helps the companies or people hedge against all the risks involved in forex markets. Online forex platforms offer the best exchange deals that provide complete transparency. To understand where Indian currency stands against other countries in the world, use an online forex comparison tool. Then there is a conversion tool, which will let you know about the conversion rate of Indian currency. When you will compare Indian currency with other countries, you’ll get to know that there are countries where Indian currency is the strongest. But, there are a few countries, where Indian currency is way cheaper.
List of currencies where Indian currency is weak:-
- As mentioned above, there are many countries where the value of the rupee is comparatively weaker. If you compare the Indian rupee to the American dollar today, then the value of the Indian rupee is seventy-two, which is equal to one American dollar.
- The value of the European dollar makes the Indian rupee decline further on the list. Currently, the value of one EURO is equal to eighty-seven Indian rupees. This has seen a dip and rise because of COVID and other market conditions.
- If you compare it to United Arab Emirates Dirham, then one Dirham is equivalent to 19 INR.
List of currencies where Indian currency is strong:-
- The Indian rupee is stronger than many currencies of the world. If you compare the Indian rupee with Vietnam, then one Vietnam Dong is equal to 0.0032 Indian rupees.
- Indian rupee is strong against the Indonesian Rupiah. One Indonesian Rupiah is equal to 0.0052 Indian rupees.
- Talking bout Cambodia, the Indian rupee is way stronger. One Reil is equal to 0.018 Indian rupees.
There are many other countries in the world where the Indian rupee may have a stronger value that includes Sri Lanka, South Korea, Japan, and Chile.
The value of the rupee
The Indian rupee can strengthen against any currency of the world when it requires more currency. Alternately, it can weaken against any currency of the world when it requires more rupees to buy a unit of that currency. When the value of the rupee is more, it will lead to more investment including different assets like gold. If it is weak, fewer people would want to invest in it. When it’s cheaper, importing things to India becomes easier, and exporting things may become a bit costlier. If it weakens, then the Indian exports may become cheaper. For non-resident Indians, it is important to know the value of the rupee against their currencies of the world. Where does the rupee stand? And, what is the rate of exchange between different currencies? In the last few months, there has been a decline in the value of the rupee, naturally due to the pandemic situation. The rate of exchange depends on the value. The currency exchange rate is a major factor that a non-resident or an Indian who wants to travel abroad would keep in mind. The exchange rates that are available on forex platforms online offer flexible rates.
How can the value of the Indian currency increase globally?
When the demand for the Indian rupee increases, the value will also increase. The value of the rupee will increase with a surge in exports. This may not be the only way, but it’s surely an important factor that may increase the value of the rupee. If India exports something globally, then the exports can rise. If there is a rise in investments, there may be a sudden rise in value. This impact may not be a sudden one but a long-term one. One can’t expect the value of the rupee to rise overnight because that is not practical. The demand for exports and other factors also determine the value of the rupee in the global market. The popularity of goods are services in foreign trade is also one factor that may increase the value of the rupee.
The Indian currency has a good value against the Asian currencies globally. However, it is still weaker when you compare it with countries like America and the U.K. The political conditions of the country are another factor that determines the currency rate globally. Trading practices with other countries will let you know about the demand. Forex rates and exchange rates are competitive and keep changing. Online remittance sites give you the complete advantage of selecting the best rate of exchange. Markets were down globally due to Covid-19 but they have recovered now. With the vaccines now available, there will be a global recovery in the rates. The value of the Indian currency will increase with changing markets after recovery.