Trends in Rupee Value – 2011

In this article, we would like to present you the trends in the value of rupee against dollar in the past 1 year. For the past 2 months, there has been a disastrous period for the rupee value against dollar currency. The reasons for the volatility in the Indian currency can be attributed to the fluctuations in inflation, interest rates, current account deficits and many other factors which have affected the value of Indian currency.

But after hitting an all-time low of 54.30 against the US dollar on 15th December 2011, the rupee went high to close at 50.3 in the month of January 2012. Let us see the trends in the value of rupee and how the rupee value is appreciating by facing many highs and lows over past 1 year.

From Jan 2011 – Apr 2011: Rupee Value Increased From 46 To 44
The value of rupee was gradually increased from 46 to 44 between the months of January and April. In the month of January the rupee value was low at 46. The value of rupee kept on fluctuated between 45 & 46 and finally came high to the value of 44 in the month of April.

From Apr 2011 – Aug 2011: Decreased From 44 To 45.5 and Again Rose To Around 44
Between April to August, the value of rupee fluctuated between 44 and 45 and in August it rose to around 44. Thus in 2011, there were more number of fluctuations in the rupee value especially between April and August.

From Aug 2011 – Oct 2011: Value of Rupee Depreciated From 44 To 50
The value of rupee decreased during these months and it is observed that a major depreciation bought the rupee from 44 to 50 in the month of October. The rupee value fluctuated more in the month of October and finally it reached to a low value of 50.

From Oct 2011 – Dec 2011: Rose to around 48.5 and fell to 52
We can see major changes in these months from October to December, when value of rupee has slightly rose to around 48.5 but all of a sudden it has continuously decreased to 52 in the month of December.

From Dec 2011 – Jan 2012: Decreased to 53 and rose to around 50
In the month of December, the rupee went from 54.3 to 50.3 against dollar. We can observe a major high in the value of rupee which is gradually increasing and finally it went to around 50.3 in the month of January 2012.

Thus, we can observe that Indian currency is slightly increasing its purchasing power against dollar. And it is clearly understood that rupee has faced many highs and lows, indicating more to be a volatile currency against dollar.

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