{"id":249,"date":"2016-01-18T13:42:31","date_gmt":"2016-01-18T08:12:31","guid":{"rendered":"http:\/\/yourcareerheights.com\/?page_id=249"},"modified":"2016-01-18T17:07:10","modified_gmt":"2016-01-18T11:37:10","slug":"what-is-rupee-appreciation-or-rupee-depreciation","status":"publish","type":"page","link":"https:\/\/yourcareerheights.com\/?page_id=249","title":{"rendered":"What is Rupee Appreciation or Rupee Depreciation ?"},"content":{"rendered":"\n\n\n\n\n
Every\u00a0country has its own currency (except in Europe where a group of countries have a common currency- Euro). Conversion rate is the rate at which we\u00a0convert one currency into another currency\u00a0of two Countries. The conversion of Indian Rupee into US $ or any other currency is done by Authorised Dealers or Banks dealing in Foreign Exchange Business. The conversion takes place on the respective date of dealing.\u00a0 Buying of currency or Exchange of currency takes place in the\u00a0Foreign exchange market.\u00a0 The conversion\u00a0rate changes on daily basis depending on the demand and supply of each currency.\u00a0\u00a0<\/strong><\/p>\n

Almost daily we read in the news paper that the Rupee has depreciated or appreciated on a particular day and creates a confusion when we see that value of Rupee has moved from Rs. 62.00 to 62.95 or vice versa which gives a reverse impression . Hence it is essential to understand what is appreciation and depreciation refers to when we read such news on daily basis.\u00a0\u00a0 <\/strong><\/p>\n

What is meant by Rupee Depreciation and Rupee Appreciation?<\/strong><\/p>\n

Assuming that we wish to purchase US$100,and the selling rate being Rs. 65\/- per US$ we will need to pay Rs. 6500\/-for that day.\u00a0\u00a0A<\/strong>fter few days we find that the selling rate\u00a0becomes Rs.66.10 and we are required to pay Rs. 6610\/- for same value of US $.\u00a0 This means you have pay more to receive the same amount of US $ and hence the local currency has depreciated. <\/strong>This will be known as Depreciation of Indian Rupee.\u00a0<\/span> <\/strong><\/p>\n

On the other hand, if the rate quoted by bank on second occasion\u00a0becomes\u00a0Rs. 63.80 per US$ ie total value for 100 US$ will be\u00a0Rs. 6380\/- as against Rs 6500\/-.\u00a0\u00a0 It will be considered as appreciation of INR as this time\u00a0one has to\u00a0pay less amount to buy the same amount of US$.<\/strong><\/p>\n

Appreciation<\/em>: Appreciating Rupee means that now the Dollar is now cheaper than what it used to be earlier in other words you can buy more from the international market spending the same amount of Rupees.<\/strong><\/p>\n

Depreciation<\/em><\/span>: \u00a0When there is a fall in the value of a currency in a floating exchange rate. This is not due to a government\u2019s decision, but due to supply and demand side factors. (Although if the government sold a lot of their currency they could help cause a depreciation.)<\/span><\/span><\/strong>
<\/span><\/em><\/strong>Depreciation of the currency happens when the country follows a flexible exchange rate. Flexible interest rate means that the value of the currency is determined by the demand and supply and the central bank doesn’t intervene in it.<\/span><\/td>\n<\/tr>\n

<\/td>\n<\/tr>\n
\n\n\n\n\n\n
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Monthly Average Price for American Dollar Vs Indian Rs.<\/em><\/h2>\n<\/td>\n

<\/td>\n<\/tr>\n
The table below displays Monthly Average exchange rates between the Indian Rupee (INR) and the American Dollar (USD) or Indian Rupees vs American Dollar or INRUSD or American Dollar vs Indian Rs or INR vs USD.To chose information for particular month, Select Month name from given list.<\/td>\n<\/tr>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Month<\/a><\/td>\nMonthly Avg<\/a><\/td>\n<\/tr>\n<\/thead>\n
Jan-2016<\/a><\/td>\n66.9068<\/td>\n<\/tr>\n
Dec-2015<\/a><\/td>\n66.5172<\/td>\n<\/tr>\n
Nov-2015<\/a><\/td>\n66.1301<\/td>\n<\/tr>\n
Oct-2015<\/a><\/td>\n65.0201<\/td>\n<\/tr>\n
Sep-2015<\/a><\/td>\n66.2141<\/td>\n<\/tr>\n
Aug-2015<\/a><\/td>\n65.1255<\/td>\n<\/tr>\n
Jul-2015<\/a><\/td>\n63.6377<\/td>\n<\/tr>\n
Jun-2015<\/a><\/td>\n63.8119<\/td>\n<\/tr>\n
May-2015<\/a><\/td>\n63.7127<\/td>\n<\/tr>\n
Apr-2015<\/a><\/td>\n62.6649<\/td>\n<\/tr>\n
Mar-2015<\/a><\/td>\n62.4575<\/td>\n<\/tr>\n
Feb-2015<\/a><\/td>\n62.0242<\/td>\n<\/tr>\n
Jan-2015<\/a><\/td>\n62.1712<\/td>\n<\/tr>\n
Dec-2014<\/a><\/td>\n62.8237<\/td>\n<\/tr>\n
Nov-2014<\/a><\/td>\n61.6868<\/td>\n<\/tr>\n
Oct-2014<\/a><\/td>\n61.3482<\/td>\n<\/tr>\n
Sep-2014<\/a><\/td>\n60.885<\/td>\n<\/tr>\n
Aug-2014<\/a><\/td>\n60.8191<\/td>\n<\/tr>\n
Jul-2014<\/a><\/td>\n60.0633<\/td>\n<\/tr>\n
Jun-2014<\/a><\/td>\n59.7535<\/td>\n<\/tr>\n
May-2014<\/a><\/td>\n59.2897<\/td>\n<\/tr>\n
Apr-2014<\/a><\/td>\n60.3409<\/td>\n<\/tr>\n
Mar-2014<\/a><\/td>\n60.9919<\/td>\n<\/tr>\n
Feb-2014<\/a><\/td>\n62.1601<\/td>\n<\/tr>\n
Jan-2014<\/a><\/td>\n62.0574<\/td>\n<\/tr>\n
Dec-2013<\/a><\/td>\n61.8518<\/td>\n<\/tr>\n
Nov-2013<\/a><\/td>\n62.6098<\/td>\n<\/tr>\n
Oct-2013<\/a><\/td>\n61.5852<\/td>\n<\/tr>\n
Sep-2013<\/a><\/td>\n63.8937<\/td>\n<\/tr>\n
Aug-2013<\/a><\/td>\n62.7836<\/td>\n<\/tr>\n
Jul-2013<\/a><\/td>\n59.7968<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n
Impact of Depreciation and Appreciation of Rupee on Indian living in India.\u00a0 Assuming that initially the exchange rate of US$-INR is Rs.62.02 (Feb.15 Refer Table above) :<\/strong>\u00a0<\/strong><\/td>\n<\/tr>\n
 <\/p>\n

Effect on<\/strong><\/p>\n

\u00a0\u00a0<\/strong><\/td>\n

If\u00a0<\/strong>Rupee<\/strong>\u00a0<\/strong>DEPRECIATES<\/strong><\/p>\n

\u00a0<\/strong>(For example, when US$-INR moved from Rs.62.02 in Feb 15 to Rs\/66.90 as of Jan 16)<\/strong><\/td>\n

\u00a0If\u00a0<\/strong>Rupee APPRECIATES<\/strong><\/p>\n

\u00a0(For example, when US$-INR moves from Rs 62.02 to Rs 59.29)<\/strong><\/td>\n<\/tr>\n

Importers<\/strong><\/td>\nImports became costly since Feb 15 as for each USD we have to pay Rs. 4.88 more. <\/strong><\/p>\n

IMPORTS BECOME COSTLIER<\/strong><\/td>\n

Imports become cheaper as for each USD we have to pay Rs 2.73 less.<\/strong><\/p>\n

IMPORTS BECOME CHEAPER<\/strong><\/td>\n<\/tr>\n

Exporters<\/strong><\/td>\nExporters will have higher revenue.\u00a0 For exports of each Dollar, the exporter will get Rs 4.88 higher<\/strong>\u00a0<\/strong><\/p>\n

EXPORTERS EARN MORE<\/strong><\/td>\n

Exporters will earn lower revenue.\u00a0 For exports of each dollar, now the exporter will get Rs 2.73 less.<\/strong><\/p>\n

EXPORTERS EARN LESS<\/strong><\/td>\n<\/tr>\n

Indian Who Wish to Go on Holidays Abroad<\/strong><\/td>\nFor each dollar taken abroad for spending, the traveller has to pay Rs 4.88 more and thus his trip will become costlier<\/strong>\u00a0<\/strong><\/p>\n

TRIP IS COSTLIER<\/strong><\/td>\n

For each dollar he intends to take abroad for spending, the traveller has to pay Rs 2.73 less and thus his trip will become cheaper.<\/strong><\/p>\n

TRIP IS CHEAPER<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Every\u00a0country has its own currency (except in Europe where a group of countries have a common currency- Euro). Conversion rate is the rate at which we\u00a0convert one currency into another currency\u00a0of two Countries. The conversion of Indian Rupee into US $ or any other currency is done by Authorised Dealers or Banks dealing in Foreign…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":36,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-249","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=249"}],"version-history":[{"count":3,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/249\/revisions"}],"predecessor-version":[{"id":251,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/249\/revisions\/251"}],"up":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/pages\/36"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}