Fluctuationing Value of Rupee & Impact on Economy

Abstract

Global economy is much more interlinked than it was earlier due to lot of trade taking place between different countries. It goes without saying that U.S. is major trading partner for many nations and biggest trading importer of goods and services from across the world. Change in any direction in U.S. economy is directly going to affect economy of all related countries. Democratic principle and human capital has given India unique position among world community. Indian economic policies are flexible enough to get adjusted to the other nations. India has always been major country when it comes to being trading partner of U.S. which has always given economic and strategic support to country like India occupying strategic importance among world community. This paper is conceptual study based on Indian Rupee Fluctuation VS Dollar and relationship in terms of Rupee appreciation that is dollar depreciation and rupee depreciation that is dollar appreciation. It provides valuable insights into impact of changes in currency relations on various sectors of economy keeping in focus economy in general and Indian economy in particular. Pros and Cons of currency appreciation and depreciation are studied as boon and bane for the economic growth.