What makes dollor rate increases compare to inr?
The main factor guiding the dollar rate is the foreign reserves(dollars) of our Country. As dollars flow into our economy via exports, foreign investment etc. the exchange price for dollar decreases/rupee appreciates. Similarly, when dollars run out of economy via imports, disinvestment etc., Exchange price increases/ Rupee Depreciates. Forecast: As you see that American Economy is going to become a partial closed economy and our industries are not keen in opening up new projects, there won’t be large variation in dollar price. It will revolve around 10 paisa up or down.
