Associate Professor, Mahatma Gandhi University, Nalgonda
Online published on 21 September, 2016.
Impact of broad money supply and foreign exchange reserves is also analyzed. India stands considerably integrated with the rest of the world today in terms of increasing openness of the economy. A monthly time series from June 2007 to may 2012 is used for the purpose. It is observed that the short-term and long-term relationship of NYSE ACRA, forex reserve, imports and exports of India with exchange rates of India. Domestic interest differentials and interest yield differentials, and the rate of change of foreign exchange reserves have a significant impact on the monthly average of the exchange rate between Indian Rupee and the US Dollar and quite in line with economic theory.
Foreign Exchange Reserves, Exchange Rates, Imports & Exports of India, Foreign Exchange Markets
