Indian rupee/us dollar exchange rate case study on exchange models

The paper analyzes Exchange rate of Indian rupee/us dollar which is governed by a managed floating exchange rate. This paper includes the forward premium, capital inflows, and volatility of capital flows, order flows and central bank intervention. The study therefore four examines, first the PPP Model Second monetary model, Third Portfolio balance model, fourth GARCH Model. The following section 1 briefly describes economic theories and section 2 reviews of the relevant literature, Section 3 describes the Theoretical exchange model, and Section 4 gives the empirical results. Section 5 concludes the findings support the view of references.