{"id":39454,"date":"2023-02-27T22:17:24","date_gmt":"2023-02-27T16:47:24","guid":{"rendered":"https://www.5paisa.com/finschool/?p=39454"},"modified":"2023-03-02T14:23:59","modified_gmt":"2023-03-02T08:53:59","slug":"is-usd-inr-an-excessively-volatile-currency-pair","status":"publish","type":"post","link":"https://www.5paisa.com/finschool/is-usd-inr-an-excessively-volatile-currency-pair/","title":{"rendered":"USD-INR \u0026#8211; Is It An Excessively Volatile Currency Pair?"},"content":{"rendered":"\u003cdiv data-elementor-type=\u0022wp-post\u0022 data-elementor-id=\u002239454\u0022 class=\u0022elementor elementor-39454\u0022\u003e\u003csection class=\u0022elementor-section elementor-top-section elementor-element elementor-element-993586f elementor-section-boxed elementor-section-height-default elementor-section-height-default\u0022 data-id=\u0022993586f\u0022 data-element_type=\u0022section\u0022\u003e\u003cdiv class=\u0022elementor-container elementor-column-gap-default\u0022\u003e\u003cdiv class=\u0022elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-09a8c58\u0022 data-id=\u002209a8c58\u0022 data-element_type=\u0022column\u0022\u003e\u003cdiv class=\u0022elementor-widget-wrap elementor-element-populated\u0022\u003e\u003cdiv class=\u0022elementor-element elementor-element-a7ab6e6 elementor-widget elementor-widget-text-editor\u0022 data-id=\u0022a7ab6e6\u0022 data-element_type=\u0022widget\u0022 data-widget_type=\u0022text-editor.default\u0022\u003e\u003cdiv class=\u0022elementor-widget-container\u0022\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eIntroduction\u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cp\u003eForeign Exchange market has grown immensely over the past few years. Foreign exchange becomes more important when import and export business takes place and the need arises for currency conversions. So here let us understand about one such currency pair i.e. USD-INR and how important it is foreign exchange market.\u003c/p\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eCurrency Pairs\u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cp\u003eForex market trading happens at International Level that allows trading in different currencies like INR, EUR, JPY, and GBP. For India trading is possible only through INR. The trading can be done through BSE, NSE, or MCX-SX. USD/INR is among the popular currency pairs. Each currency pairs have two currencies in them. One is known as base currency and the other is known as quotation currency. In case of USD /INR, USD is the base while INR is the quotation and value of one USD is 82.85 INR.\u003c/p\u003e\u003cp\u003eThere are many other currency pairs apart from USD/INR which are as follows\u003c/p\u003e\u003col\u003e\u003cli\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eUSD/CAD\u003c/span\u003e\u003c/strong\u003e\u003c/li\u003e\u003cli\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eEUR/USD\u003c/span\u003e\u003c/strong\u003e\u003c/li\u003e\u003cli\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eGBP/USD\u003c/span\u003e\u003c/strong\u003e\u003c/li\u003e\u003cli\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eNZD/USD\u003c/span\u003e\u003c/strong\u003e\u003c/li\u003e\u003cli\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eAUD/USD\u003c/span\u003e\u003c/strong\u003e\u003c/li\u003e\u003cli\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eUSD/CHF\u003c/span\u003e\u003c/strong\u003e\u003c/li\u003e\u003cli\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eEUR/JPY\u003c/span\u003e\u003c/strong\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eWhere \u003c/strong\u003e\u003c/span\u003e\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eUSD\u003c/span\u003e \u003c/strong\u003e= US Dollars\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eEUR\u003c/strong\u003e =\u003c/span\u003e European Dollars\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eGBP\u003c/span\u003e \u003c/strong\u003e= Great Britain Pound\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eNZD\u003c/span\u003e \u003c/strong\u003e= New Zealand Dollar\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eAUD\u003c/strong\u003e \u003c/span\u003e= Australian Dollar\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eJPY\u003c/span\u003e   \u003c/strong\u003e= Japanese Yen\u003c/p\u003e\u003cp\u003e\u003cstrong\u003e\u003cspan style=\u0022color: #000080;\u0022\u003eCAD\u003c/span\u003e=\u003c/strong\u003e Canadian Dollars\u003c/p\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eWhat are the Factors that Impact USD-INR Currency Pair Prices?\u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-3.svg\u0022\u003e\u003cimg fetchpriority=\u0022high\u0022 decoding=\u0022async\u0022 class=\u0022 wp-image-39458 aligncenter\u0022 role=\u0022img\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-3.svg\u0022 alt=\u0022\u0022 width=\u0022471\u0022 height=\u0022471\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 150w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 1536w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 2048w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 96w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-3.svg 375w\u0022 sizes=\u0022(max-width: 471px) 100vw, 471px\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eInflation Rates\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eMarket Inflation has a major impact on the foreign currency exchange rates. A country which has lower inflation rate than other will see an appreciation in its value of its currency. Where the inflation is low price rise is also low. Country whose inflation is high always sees a depreciation in its value of currency.\u003c/p\u003e\u003col start=\u00222\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eInterest Rates\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eChanges in Interest Rates effects the currency value and dollar exchange rate. Forex rates, interest rates and inflation all the three terms have correlation with each other. Increase in the interest rates causes currency to appreciate as higher rate of interest provides higher returns to the foreign lenders and thereby increasing the foreign capital and this leads to rise in exchange rates.\u003c/p\u003e\u003col start=\u00223\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eCountry’s Current Account and Balance of Payment \u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eCurrent Account reflects the balance of trade and earnings on foreign investment. It includes total number of transactions such as exports, imports, debt etc. A deficit in current account occurs when there are huge amount of imports than the exports carried out. Balance of Payment fluctuates exchange rate of domestic currencies.\u003c/p\u003e\u003col start=\u00224\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eGovernment Debts\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eGovernment Debt is national debt which is owned by the central government. A country where there are large amount of Government Debts the possibility of acquiring foreign capital is very low. There is high chances of inflation too. Foreign investors will sell their bonds in the open market if there is government debts, As a result decline on value of exchange rates follows.\u003c/p\u003e\u003col start=\u00225\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003ePolitical Stability and Performance\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003ePolitical Stability and Economic Performance effects the currency strength of the country. Where there are political disrupts and turmoil, foreign investors become reluctant to invest in such country. A country with sound financial trading policy experience more stability in their currency value but where there is political instability currency value also depreciates simultaneously.\u003c/p\u003e\u003col start=\u00226\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eTerms of Trade\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eA trade deficit also can cause exchange rates to fluctuate. Terms of Trade is related to ratio of export prices to that of import prices. A country’s terms of trade improves if the exports increase at a greater level than that of the imports. This results in higher revenue due to which demand for currency increases as well as currency value appreciates.\u003c/p\u003e\u003col start=\u00227\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eRecession\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eRecession means a situation where there is economic decline and trade, industrial activities are reduced followed by fall in GDP. Now when the country is in such a crisis there will be obvious impacts on countries currency. Foreign capital inflow reduces as foreign players avoid investing when the economy is under crisis.\u003c/p\u003e\u003col start=\u00228\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eSpeculation\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eSpeculation means believing in something without any strong evidence. In stock market, investors speculate about gaining profit without having strong evidence about it. Due to this speculation investors demand more with the expectation of returns. This appreciates currency value and exchange rates as well.\u003c/p\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eWhat is PIP?\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-1.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022size-medium wp-image-39456 aligncenter\u0022 role=\u0022img\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-1.svg\u0022 alt=\u0022\u0022 width=\u0022300\u0022 height=\u0022300\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 150w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 1536w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 2048w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 96w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-1.svg 375w\u0022 sizes=\u0022(max-width: 300px) 100vw, 300px\u0022 /\u003e\u003c/a\u003e\u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cp\u003e \u003c/p\u003e\u003cp\u003ePIP means Point in Percentage. It is the basic unit in foreign exchange trading. When references rates are stated by the apex bank i.e. the Reserve Bank of India the quote is till the 4\u003csup\u003eth\u003c/sup\u003e Decimal point. Even a small difference in the fourth point can make a huge difference in foreign reserves. All over the world, the currency is quoted till the 4\u003csup\u003eth\u003c/sup\u003e Decimal Point. This is called PIP. It is fixed at 0.0025 for USD/INR. It is also known as tick size. The lot size is fixed to USD 1000.           \u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eTrading USD/INR in Derivative Market\u003c/strong\u003e\u003c/span\u003e\u003c/p\u003e\u003cp\u003eEarlier Indian Businesses could hedge their currency exposure with the help of banks by buying forward contracts in the forward market. Currency Derivatives have bought in a major change. It is now much easy to cover currency risk by opening a trading account with the broker. These currency futures and currency options can be bought and sold from the comfort of your home through the internet trading platform. Since India’s trade and commerce continues to be denominated in USD, the USD/INR pair has become popular pair.\u003c/p\u003e\u003cp\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eBenefits of Opting for the USD/INR pair in the currency derivative market\u003c/strong\u003e\u003c/span\u003e\u003c/p\u003e\u003cp\u003eUSD/INR pair can be opted by resident Indians or NRI, even if there is no underlying but only up to certain limit. This is not like the forward market where you can hedge an underlying currency exposure. The bid ask spreads are as low as 0.0025 and that substantially reduces the risk of liquidity while trading. The USD-INR pair is based on the transparent market mechanism. This makes it more preferable for individual traders who have limited access to information and insights\u003c/p\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eHow Global factors Influence the Value of Rupee?\u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cul\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eCapital flows; both FPI and FDI\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eForeign direct investment (FDI) is known as stable money while FPI flows are called hot money. They are called so because FPI flows are portfolio flows and can reverse direction at short notice. The equity sell off in the year 2008 and debt sell off by FPI in the year 2013, in both these situations, the INR value depreciated sharply. Over the last 2 years, India has emerged as the largest annual recipient of FDI investments and that has given a higher degree of stability to the INR. More selling often increases more demand for dollars and thus rupee becomes weaker. Capital outflows have major impact on the rupee as FPI wants their money invested to be safe.\u003c/p\u003e\u003cul\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eFed Rates\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eUS Bonds are based on the Fed rates. When the Fed Rates are high you can expect higher yields on US Bonds. Global investors willing to make money can grab this great opportunity.\u003c/p\u003e\u003cul\u003e\u003cli\u003eThe investors feel that US Bonds is safer than risking oneself. When Fed Rate increases Rupee weakens. \u003cbr /\u003e \u003cbr /\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eCurrency Wars\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ul\u003e\u003cp\u003eCurrency war is a situation where countries sometimes devalue their currencies hoping to make debt payment easier and also to stimulate the economy. By lowering the value of the currency exports become cheaper than those of other countries and helps in boosting employment. The situation where one country devalues its currency and other follow the suit to boost their economies by shifting the balance of trade it is known as currency war. The rupee value is measured in terms of US$. Hence it is default exposed to external factors. \u003c/p\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eWhat are the Indicators of USD-INR Pair?\u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cp\u003e\u003ca href=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-2.svg\u0022\u003e\u003cimg decoding=\u0022async\u0022 class=\u0022 wp-image-39457 aligncenter\u0022 role=\u0022img\u0022 src=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-2.svg\u0022 alt=\u0022\u0022 width=\u0022371\u0022 height=\u0022371\u0022 srcset=\u0022https://www.5paisa.com/marathi/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 150w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 300w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 1024w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 1536w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 2048w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 50w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 100w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 96w, https:/www.5paisa.com/finschool/wp-content/uploads/2023/02/USD-INR-2.svg 375w\u0022 sizes=\u0022(max-width: 371px) 100vw, 371px\u0022 /\u003e\u003c/a\u003e\u003c/p\u003e\u003col\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eDollar Index\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eIt tracks the dollar movement against 6 major leading currencies in the world. It just like the NIFTY index made up of 50 stocks and gives the investor broad direction about the equity market. DXY gives the broad indication of dollar movement globally. For example during Covid 19 FY 2020-21, DXY jumped from 96/97 to 103 and from there retracted to as low as 89.50/90. During the same time USD-INR moved from 72.50 to 76.50+ and slowly pulled back as DXY came down. Thus price of DXY can be tracked to check USD-INR value.\u003c/p\u003e\u003col start=\u00222\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eCrude Oil\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eIndia imports crude Oil on a very large scale which contributes around 20-22% share. Higher the crude oil prices INR would depreciate more.\u003c/p\u003e\u003col start=\u00223\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eCapital Flows\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eAs we track FPIs number in the equity market, similarly FX traders watch capital flows in economy. Higher the flows, higher the possibility of INR appreciating against dollar. Also when the outflows are higher rupee can weaken more than dollar.\u003c/p\u003e\u003col start=\u00224\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eRisk Sentiments\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eIt defines how the market is looking at risk. Better the risk sentiment, better for EM currencies. The best indicator to gauge risk sentiment is performance of global equity market and other risks assets like commodities and it is also dependent upon global growth and liquidity.\u003c/p\u003e\u003col start=\u00225\u0022\u003e\u003cli\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eRBI Intervention\u003c/strong\u003e\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e\u003cp\u003eThis is a difficult task to guess when RBI can intervene in FX market. The point to be remembered here is FX also has an impact on external trade and competitiveness of Indian products in international market. Hence, RBI, at times intervenes to ensure orderly price movement and maintain export competitiveness.\u003c/p\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eWhy is USD becoming stronger than INR? \u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cp\u003eThe Year 2022 was not so good for Indian Rupee. The reasons included global tantrums and domestic factors such as rising inflation. Dollar strengthened amid Russia-Ukraine conflict, global inflation concerns led surge in US Bond Yields, and the result is an appreciating Dollar.\u003c/p\u003e\u003cp\u003eSupply chain disruptions and food inflation have added up to the above reasons. Russia-Ukraine war seems to have no solution and there is a slowdown in world’s three largest economies i.e. US, China and Europe. Though Indian currency looks weaker, but there is an expectation that Indian economy will perform much better in the near future in the second half of the year 20\u003c/p\u003e\u003cp\u003eIn the past few weeks, Corporate Dollar Demand, foreign fund outflows, risk averse sentiments and broad based strength in the dollar are the major factors that contributed to push the rupee towards lower side. Also rise in inflation has put a high pressure on the Reserve Bank of India to hike interest rates. But in the near future the spot USD/INR seems to be bullish momentum oscillators and indicators.\u003c/p\u003e\u003ch2\u003e\u003cspan style=\u0022color: #000080;\u0022\u003e\u003cstrong\u003eConclusion\u003c/strong\u003e\u003c/span\u003e\u003c/h2\u003e\u003cp\u003eThus it can be said that US Dollars is considered as the benchmark for global transactions and therefore it has a direct impact upon the strength of the Indian Rupee. India being US’ ninth largest goods trading partner , the two countries enjoy strong collaborations in precious metals and stone, mineral fuels and pharmaceuticals which makes the USD/INR pair an exciting one for the traders looking to earn profit for long term and also for short term opportunities.\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\u003c/section\u003e\u003c/div\u003e","protected":false},"excerpt":{"rendered":"\u003cp\u003eIntroduction Foreign Exchange market has grown immensely over the past few years. Foreign exchange becomes more important when import and export business takes place and the need arises for currency conversions. So here let us understand about one such currency pair i.e. USD-INR and how important it is foreign exchange market. Currency Pairs Forex market … \u003ca title=\u0022USD-INR \u0026#8211; Is It An Excessively Volatile Currency Pair?\u0022 class=\u0022read-more\u0022 href=\u0022https://www.5paisa.com/marathi/finschool/is-usd-inr-an-excessively-volatile-currency-pair/\u0022 aria-label=\u0022Read more about USD-INR \u0026#8211; Is It An Excessively Volatile Currency Pair?\u0022\u003eRead more\u003c/a\u003e\u003c/p\u003e","protected":false},"author":1,"featured_media":39465,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18,78],"tags":[],"class_list":["post-39454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-learn-every-aspect-of-markets"],"acf":[],"_links":{"self":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/39454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts"}],"about":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/types/post"}],"author":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/users/1"}],"replies":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/comments?post=39454"}],"version-history":[{"count":10,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/39454/revisions"}],"predecessor-version":[{"id":39795,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/posts/39454/revisions/39795"}],"wp:featuredmedia":[{"embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media/39465"}],"wp:attachment":[{"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/media?parent=39454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/categories?post=39454"},{"taxonomy":"post_tag","embeddable":true,"href":"https://www.5paisa.com/finschool/wp-json/wp/v2/tags?post=39454"}],"curies":[{"name":"wp","href":"https://api.w.org/{rel}","templated":true}]}}