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presentation group 3 - Group 3 Indian Rupee Rises to...

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Group 3 Indian Rupee Rises to Four-Month High on Record Stock Inflows The Indian rupee is the official currency of the Republic of India. The issuance of the currency is controlled by the Reserve Bank of India. The Indian rupee is the only legal tender accepted in India. The exchange rate as on 13 October 2010 is 44.3485 INR the USD. The Indian rupee is accepted as legal tender in the neighboring Nepal and Bhutan, both of which peg their currency to that of the Indian rupee. However Indian Rupee denominations of 500 and 1000 are banned in Nepal. The rupee is divided into 100 paise. The highest-denomination banknote is the 1,000 rupee note; the lowest-denomination coin in circulation is the 25 paise coin (it earlier had 1, 2, 5, 10 and 20 paise coins which have been discontinued by the Reserve Bank of India) The Rupee hit a record low during early 2009 on account of global recession. However, due to a strong domestic market, India managed to bounce back sooner than the western countries. A rising rupee also prompted Government of India to buy 200 tonnes of Gold from IMF. (Wikipedia) In 2010, overseas investors have poured $22 billion into India’s shares and $10 billion into its debt to get benefit from the nation’s relatively fast economic growth. India’s rupee increased to the highest point in more than four months. According to data realeased yesterday by the Securities and Exchange Board of India , Global investors have pumped 18.6 billion so far this year into Indian stocks, 56 percent more than a year earlier. The currency has climbed 4.7 percent in September. It is the biggest monthly advanve since May 2009. Besides, Brazil’s real climbed 4 percent, China’s yuan appreciated 1.7 percent and Russia’s ruble gained 0.8 percent. The rupee reach as an index can measure that the dollar’s strength dropped to a seven month low. It forecasts the weaker demand for the
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This note was uploaded on 05/02/2011 for the course FINANCE 9924603 taught by Professor Ssgdbfb during the Spring '11 term at Kyung Hee.

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presentation group 3 - Group 3 Indian Rupee Rises to...

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