most of u would hv wondered why rupee is getting weaker what determines everyday conversion rates is any body benefiting from rupee getting weaker. well i wondered and finally understood. dollar is like the international currency it is like the most commonly used one the next two being gold and coffee. actually i was also surprised when i heard about coffee being the 3 rd most commonly used one. back to where we started we hv import and export here during export we get payments as dollar and during import the opposite so usually there is a balance but cases where import is more there is requirement for dollar to pay for it and so we convert rupee to dollar thus creating a deficit whenever there is a deficit there is following demand and thus demand of dollar increases so rate goes up so RBI puts control on import to stop this there are 2 essential imports in India 1.crude oil 2.gold. oil cant be touched so we put some control on gold but if crude oil price in international market increases we are fucked up which is happening now so who is the loser and winner well basically by rupee getting weaker Indians are only affected no one else OK here our importers are screwed since to get 1unit they have to pay the same amount of dollars for which more rupee needs to be converted but exporters are lucky because they get same price in dollars for their goods while its worth in rs is still more so what we can do is use less crude oil less buy less gold and importantly use less imported materials. what determines everyday conversion rates is just the ratio of import and export in every port etc over a time period.
