1. By:- CA Abhinav Jain

2.  Value of one country’s currency in terms of
other currency.
e.g.
1$ = 63.71 INR
It may fluctuate daily.

5.  A country with a lower inflation rate than
another's will see an appreciation in the value
of its currency.
 higher inflation typically sees depreciation
and is usually accompanied by higher interest
rates

6.  Increases in interest rates cause a country's
currency to appreciate
 Higher interest rates provide higher rates to
lenders, Attracting more foreign capital,
which causes a rise in exchange rates
 Forex rates, interest rates, and inflation are
all correlated.

7.  Balance of trade and earnings on foreign
investment.
 Total number of transactions including its
exports, imports, debt, etc.
 Spending more on importing products than it
sale of exports causes depreciation.

8.  Public debt or national debt owned by the
central government.
 A country with government debt is less likely
to acquire foreign capital, leading to inflation.
 Foreign investors will sell their bonds in the
open market
 As a result, a decrease in the value of its
exchange rate will follow.

9.  Recession
 Political stability
 Terms of trade

11.  Weighted average of Time series model,
Regression mode, sensitivity analysis, spot rates,
forward rates.
 Demand & Supply
Demand of the currency increase – Appreciate currency
& vice versa

12.  FIIs Demand increase.
 Greece Insolvency Uncertainty in market
 Make in India Demand increases
 Gold, Crude oil (investment)

13. CA Abhinav Jain