The Indian rupee has lost about 27.6 per cent of its value against the US dollar in the last 10 years. However, the rupee has appreciated against other major global currencies.

Let's take a look at how the Indian rupee has fared in the last 10 years.

From 2004 to 2014:
The rupee depreciated from 44.37 to 60.34 (26.5 per cent).

From 2014 to 2024:
Rupee depreciated from 60.34 to 83.38 (27.6 per cent).

From 2004 to 2024:
The rupee depreciated from 133.77 to 90.76 (32.2 per cent).

The average exchange rate of the rupee to the US dollar declined by 45.7 per cent from 2004 to 2024 (from 44.9 to 82.8).

From 2004-05 to 2023-24:
The Real Effective Exchange Rate (REER) has increased in the 40-currency basket and the 6-currency basket.
This indicates an increase in the real exchange value of the rupee.

What's the exchange rate?
Meaning:
An exchange rate is the rate at which you can exchange one currency for another.
This means that the value of one currency is in line with another currency.

Type:

Fixed exchange rate: The value of the currency is set by the government or central banks.
Floating exchange rate: The value of the currency is determined based on the demand and availability in the market.
Managed float: This is a method of switching between a floating format and a fixed rate.
Factors affecting the exchange rate:
Fake interest rates
High counterfeit rates attract foreign investment and increase the value of the currency.
Inflation
High inflation reduces the value.
The economic growth
Strong economic growth increases confidence in the currency.
The political stability
Political instability affects foreign investments and weakens the currency.
supply and demand
The fundamentals of the market play a big role.