EconPapers    
Economics at your fingertips  
 

Determinants of the Indian rupee/US dollar exchange rate and policy implications

Yu Hsing

International Journal of Economics and Business Research, 2015, vol. 10, issue 2, 105-111

Abstract: Based on a simultaneous-equation model of demand and supply, this paper finds that the Indian rupee/US dollar (INR/USD) exchange rate is positively associated with the US real government bond yield, Indian real GDP, the US real stock price and the expected INR/USD exchange rate and is negatively affected by the Indian real interest rate, US real GDP and the Indian real stock price. The finding that a higher Indian real interest rate would cause the Indian rupee to appreciate against the US dollar is consistent with the traditional view.

Keywords: exchange rates; interest rates; real GDP; stock prices; EGARCH; India; USA; United States; Indian rupee; US dollar; INR-USD exchange rate; government bond yield. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=70977 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijecbr:v:10:y:2015:i:2:p:105-111

Access Statistics for this article

More articles in International Journal of Economics and Business Research from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().

 
Page updated 2025-03-19
Handle: RePEc:ids:ijecbr:v:10:y:2015:i:2:p:105-111