USD / INR

## What this measures

This measures the spot exchange rate between the Indian rupee and the US dollar, expressed as the number of rupees required to purchase one dollar.

## Why it matters

The rate affects the cost of imports from India, the rupee-denominated revenue of sales there, and the dollar value of Indian assets or liabilities on balance sheets. Movements in the exchange rate alter margins on cross-border contracts, the competitiveness of goods priced in each currency, and the translation of earnings from Indian operations.

## How to read it

A rise means the rupee has weakened and each dollar buys more rupees, making Indian goods cheaper in dollar terms and dollar debts more expensive to service in rupees. A fall means the rupee has strengthened. Compare the rate across time to assess currency risk and the relative cost of transacting in each market.

## What it does not say

The rate does not indicate why the currencies moved, the likelihood of intervention by central banks, or forward expectations beyond the spot price.

## Source

The Federal Reserve publishes the series DEXINUS, which Palanor pulls from the FRED API nightly.