A Study on Foreign Exchange Market Analysis with Reference to US Dollar

Abstract

The foreign exchange market is the world's largest financial market and plays an important role in international trade, investment, and economic growth. This study examines the Indian Rupee–US Dollar exchange rate and the factors influencing its movements. Inflation, interest rates, foreign investment, foreign exchange reserves, trade balances, monetary policies, and global economic conditions are considered important determinants. The study also examines the effects of exchange-rate changes on imports, exports, investment, business profitability, and financial stability. Primary data were collected from 100 respondents and analyzed through percentage analysis. The findings emphasize effective exchange-rate management, risk management, technological development, and stable monetary policies.   Keywords: Foreign Exchange Market, INR, USD, Exchange Rate, Foreign Investment