Name: INR – Indian Rupee
Denominations: 1, 2, 5, 10, 20, 50, 100, 500, 1000 notes. 50 paise, 1, 2, 5, 10 coins.
What factors affect it?
India is another country that uses the floating currency system, so again the amount India imports and exports can affect demand for the Rupee and therefore the value of it.
Political instability can affect the Rupee and depreciate the value of it greatly by sparking a domino effect in which trade is affected and the implementation of policies is delayed. Also advances in science, technology and the military all have an effect on currencies like the Rupee. When India undertook nuclear testing, for example, the Bombay stock exchange initially announced significant gains. However by 1998, the cost of testing nuclear weapons had placed them approximately $44 billion in debt and a wide range of sanctions were placed on India by other countries, though as India isn’t a trading based country it had minimal effect. The biggest problem the nation faced was debt and limits for lending inserted by the United States.