This is very interesting example why when we look at the exchange rate we have to take a deeper look to see what really happened. We need to know what really happen, even if one currency rises against another, it does not mean that there is a depreciation of the foreign currency.
For a fifth straight session the Indian currency has dropped 11 paise to 66.84 against the US dollar in early trade on Tuesday, tracking weak trend in Asian currencies. The currency had closed at 66.73 against the dollar in the previous session on firm dollar demand from importers.
The Reserve Bank of India (RBI) today fixed the reference rate of the rupee at 66.3840 against the US dollar
Finally after a 7-day fall streak the Rupee has appreciated. The Indian currency appreciated by 4 paise to 66.4 against the US dollar on Tuesday morning. We have also seen gains in other Asian currencies.
