Rupee exchange forex report vs. US Dollar

The government on Monday said appreciation of the rupee against the dollar is hurting exports. So the government was planning a package to soften its impact on employment-intensive sectors, which do not rely heavily on imports.
“The appreciation of the rupee is (adversely) impacting exports.The rupee forex rate us dollar is echanged for shekel, It is a cause of concern. We have invited comments from export promotion councils on how to cushion employment intensive industries, where dependence on imported inputs was less, from it," commerce and industry minister Kamal Nath said.

Nath had earlier said the proposed package could be in the form of a scheme to refund local taxes that exporters have to pay. He said due to rising rupee, realisations of exporters have gone down, thus hurting their competitive factor.

As value of dollar against the rupee has gone down, exporters would get less money against their foreign exchange earnings, which in turn, could force them to raise prices of their products, making them less competitive.

Nath said the full impact of the appreciating rupee (forex exchange rate)would be felt in July when new contracts were entered in to. The rupee has appreciated more than 12% since August.

He asked the exporters to deal with rising rupee and high costs of inputs by becoming more efficient as it would also help them in facing competition.

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The rupee (Hindi) is the currency of India. The issuance of the currency is controlled by the Reserve Bank of India. The most commonly used symbol for the rupee are Rs, ₨ and रू. The ISO 4217 code for the Indian rupee is INR.

In most parts of India, the rupee is known as the rupee, roopayi, rupaye, rubai or one of the other terms derived from the Sanskrit rupyakam [1] (Devnagari: रूप्यकं), raupya meaning silver; rupyakam meaning (coin) of silver. However, in the Bengali and Assamese languages, spoken in Assam, Tripura, Orissa and West Bengal, the rupee is known as a Taka, symbol ৳, and is written as such on Indian banknotes.

The modern rupee is subdivided into 100 paise (singular paisa). As is standard in Indian English, large values of Indian rupees are counted in terms of thousands, lakh (100 thousand, in digits 1,00,000), crore (100 lakhs, in digits 1,00,00,000) and arawb (100 crore, in digits 1,00,00,00,000). The use of million or billion, as is standard in American or British English, is far less common. For example, the amount INR 1,25,84,729.25 is spoken as one crore twenty-five lakhs eighty-four thousand seven hundred twenty-nine rupees and twenty-five paise (see Indian numbering system).

History

History of the rupee - US DOLLAR vs. Rupee - History of Forex Exchange

India was one of the earliest issuers of coins (circa 6th Century BC). The first "rupee" is believed to have been introduced by Sher Shah Suri (1486-1545), based on a ratio of 40 copper pieces (paisa) per rupee. Among the earliest issues of paper rupees were those by the Bank of Hindustan (1770-1832), the General Bank of Bengal and Bihar (1773-75, established by Warren Hastings) and the Bengal Bank (1784-91), amongst others.

During British rule, and the first decade of independence, it was subdivided into 16 annas. Each anna was subdivided into 4 paise (also written pice) or 12 pies. Until 1815, the Madras Presidency also issued a currency based on the fanam, with 12 fanams equal to the rupee.

Historically, the rupee, derived from the Sanskrit word raupya, which means silver, was a silver coin. This had severe consequences in the nineteenth century, when the strongest economies in the world were on the gold standard. The discovery of vast quantities of silver in the U.S. and various European colonies resulted in a decline in the relative value of silver to gold. Suddenly the standard currency of India could not buy as much from the outside world. This event was known as "the fall of the rupee."

In 1898, the rupee was tied to the gold standard through the British pound by pegging the rupee at a value of 1 shillings 4 pence (i.e., 15 rupees = 1 pound). In 1920, the rupee was increased in value to 2 shillings (10 rupees = 1 pound). However, in 1927, the peg was once more reduced, this time to 1 shilling 6 pence (13⅓ rupees = 1 pound). This peg was maintained until 1966, when the rupee was devalued and pegged to the U.S. dollar at a rate of 7.5 rupees = 1 dollar (at the time, the rupee became equal to 11.4 British pence). This peg lasted until the U.S. dollar devalued in 1971.

The Indian rupee replaced the Danish Indian rupee in 1845, the French Indian rupee in 1954 and the Portuguese Indian escudo in 1961. Following independence in 1947, the Indian rupee replaced all the currencies of the previously autonomous states. Some of these states had issued rupees equal to those issued by the British (such as the Travancore rupee). Other currencies included the Hyderabad rupee and the Kutch kori.

In 1957, decimalisation occurred and the rupee was divided into 100 naye paise (Hindi for "new paise"). In 1964, the initial "naye" was dropped. Many still refer to 25, 50 and 75 paise as 4, 8 and 12 annas respectively, not unlike the usage of "bit" in American English for ⅛ dollar.