We have all heard about the rupee either appreciating or depreciating. But how does a currency fluctuate?
Globally, countries have their own currency, but from a trade standpoint, the US dollar plays a dominant role in many international transactions, especially in commodities like crude oil and gold.

The rupee operates under managed floating exchange rate, so the global macroeconomic factors and the domestic economic factors impact the currency value. However, it is regulated by the Reserve Bank of India (RBI) to prevent excess volatility. So, what are the factors that impact the rupee?