why the value of dollar is too high in comparison to ur indian currency
The rate of exchange is determined by the intersection of demand and supply of the currency in the foreign exchange market. Higher the demand for foreign currency, higher will be the exchange rate. Similarly lower the demand, lower is the exchange rate.
India’s imports are much higher than its exports which implies that people of India need more of foreign currency ($) to buy foreign produced goods and services than the foreigners need our currency to buy Indian goods and services. So demand for Rupees is very low as compared to dollars. So the value of dollar is too high in comparison to Indian currency.
India’s imports are much higher than its exports which implies that people of India need more of foreign currency ($) to buy foreign produced goods and services than the foreigners need our currency to buy Indian goods and services. So demand for Rupees is very low as compared to dollars. So the value of dollar is too high in comparison to Indian currency.