The Effect Of Exchange Rate Fluctuations On International Trade Of India

The current study has emphasized on finding out the impact of exchange rate on international trade of the country. A higher-valued currency makes imports of a nation less costly, and its international exports more costly. A lower-valued currency makes imports more costly for a nation and international markets less costly for its exports. A higher exchange rate can be expected to worsen a country's trade balance whereas it can be expected to be boosted by a lower exchange rate. The current study has been conducted on the annual values of foreign exchange rate of India (Indian rupees and USD $) and international trade of India covering the data from 1991 to 2019. The ordinary Least Square regression model has been used to establish the relationship between exchange rate and international trade of the country. The findings of the study suggest the relationship between taken variables.