Trends In The Valuation Of Indian Currency Since 1991

Abstract

This paper aims to explore the dynamics of trends in currency valuation by studying the relationship between inflation and exchange rates after the period of Economic Reforms in India. The scope of the paper also explores the interconnection of exchange rates and inflow of FDI in the country and the balance of trade. We examine trends in inflation through the Wholesale Price Index and Consumer Price Index, over the sample period. We aim to use statistical tools, namely correlation, the standard deviation to indicate the relationship between the variables in addition to the tools of data analysis, to extricate the desired results.