Trends in Exchange Rate of Indian Rupee as Against U.S. Dollar

Financial markets are arrangements that deals in financial securities (or financial instruments) and financial services. These are the markets that facilitate the buying and selling of financial services. The corporations, financial institutions, individuals and the government are participants in the financial markets. The foreign exchange market is important element of the financial market of any country. In foreign exchange market, paper denominated in a given currency is traded against paper denominated in another currency. It is the market where exchange rates are determined. An exchange rate regime is the way at which one currency may be converted into another currency. In this paper, an attempt has been made to study the trends in exchange rate of Indian Rupee as against U.S. Dollar during the pre- crisis period and post- crisis period. The study found that the annual growth rate of Indian Rupee recorded negative only during 2010-11 but remained positive throughout the second phase. There was a highest increasing trend 140.64 per cent, 137.27 per cent, 128.21 per cent and 126.86 per cent in 2016-17, 2015-16, 2014-15 and 2013-14 respectively. The Indian Rupee recorded negatively insignificant growth rate of 1.46 per cent as against U.S. Dollar during the first phase and recorded significant growth rate of 6.23 per cent during the second phase.