The value of a country's currency is linked with its economic conditions and policies.Ĭomprises all the currency in the economy as well as the money in savings and current accounts held with banks (demand deposits). One rupee in 1947 is not the same as one rupee today, both in terms of appearance and purchasing power. Money is not an organic creature but its value keeps changing with the society and its economic conditions. They exist as entries in ledgers of financial intermediaries and can be used to make payments for goods and services. Instruments such as cheques, demand drafts and banker's drafts are commercial bank money. In contrast, fiat money's value is imposed by the government, which makes refusal of payments made in the notified legal tender, in the form of currency notes and coins, illegal. Representative money is token coins and notes that can be exchanged for a fixed amount of precious metals or other commodities. The use of commodity money is similar to barter, except that the commodity used is widely accepted and can be easily handled.

Gold coins, cocoa beans, cattle or anything that has a value of its own and is used as a medium of exchange is commodity money. It can be of different types-commodity money, representative money, fiat money and commercial bank money. Money is the value assigned to a commodity, a piece of paper, a coin or electronic data (think online banking and credit cards). Shops accept currency notes and coins, but they also accept credit cards. On the domestic equity market front, the BSE Sensex ended 284.42 points or 0.51 per cent higher at 55,681.95, while the broader NSE Nifty advanced 84.40 points or 0.51 per cent to 16,605.25.įoreign institutional investors remained net buyers in the capital market on Wednesday as they purchased shares worth Rs 1,780.94 crore, as per exchange data.With the exception of someone living in a cave on an undiscovered island, everyone uses money. With the Euro holding the major weight in the dollar index, any unexpected outcome from the meeting will be dollar positive and in turn, weigh on other currencies,” said Dilip Parmar, Research Analyst, HDFC Securities. “All eyes will be on the European Central Bank (ECB) meeting, which will impact the dollar index. “After the last four days’ underperformance, Indian Rupee becomes the second best-performing currency among Asian currencies on probable dollar selling by state banks on behalf of central banks and mild foreign fund inflows.

The dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.04 per cent at 107.03.īrent crude futures, the global oil benchmark, fell 4.46 per cent to USD 102.15 per barrel. On Wednesday, the rupee for the first time settled below the 80-level against the US currency due to strong dollar demand from importers and fiscal slippage concerns. The local unit recouped losses later and settled at 79.85 (provisional), registering a rise of 20 paise over its previous close.

The rupee recovered from its all-time low of 80.06 to close 20 paise higher at 79.85 (provisional) against the US dollar on Thursday following overall weakness in crude oil prices and fresh foreign fund inflows.Īt the interbank forex market, the local unit opened lower at 80.03 against the greenback and fell further to an intra-day low of 80.06.

1 dollar to rupee