Why dollar is moving up and rupee is going down?

We all know about recession and it is worse in US and better in India as compared to US, then how come dollar is appreciating with respect to Indian rupee? Don't you think that Indian rupee should go up and... keep reading →

Well one needs to understand here what is "Up" and "Down". many people dont really understand that.

If Rs is 50 per 1 USD (also depicted as USD:RS::50:1 or USD/RS - 50:1 or simply USD/RS - 50)

& then

Rs moves to 45 per 1 USD ( Simply USD/RS - 45),

That does mean rupee is falling in its value..!

That means Rupee actually is Appreciating against dollar/Strengthening i.e Initially 50 RS had power to buy 1USD but now even 45 RS can buy 1USD

So if rupee is falling, that means RS is strengthening against weakening USD

Thats how other currencies are also valued

As regard recession,

USD is the only currency right now which people buy(strengthen it) and sell others(make then weak)

when recession fears deepen or there is bad news around (just like Swine flu news few days back)

RS fell to all time weakness of some 51+ just a while back....bcoz of same fears

Other currencies also fell. & USD was strengthened

Now some fears have been allayed and some are saying recession is over, so thats why minor currencies have again started appreciating and so is rupee.

Hope you got the idea at least.

Regards