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A Study of Indian Rupee Fluctuation against US Dollar
This paper is an attempt to study and understand the dynamics of Indian Rupee fluctuations against US Dollar, using yearly observations over the period of 12 years from 2001 to 2012. In this paper, evolution of exchange rate mechanism from fixed to hybrid exchange rate system in the context of India along with the journey since independence has been explored. Further, an attempt has been made to identify the key macroeconomic variables inai injiuence ine inuian rupee jiuciuaiions againsL ivo uoiiar. rinaiiy, iviuiiivariaie Regression Analysis is done to know the determinants of the rupee fluctuations against the dollar.
Keywords
Exchange Rate, Forex Reserve, Rupee Fluctuation
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