If it takes more Indian currency to buy 1 USD, it means that the Indian currency has depreciated and if it takes less, the currency has appreciated. If the value of foreign currency increases, imports get expensive and exports get cheaper. The whole global trade is possible because of its existence. The exchange rate constantly changes in the global foreign exchange market and is an important determinant of a nation's economic power. The value of 1 USD to INR keeps fluctuating and it is called the exchange rate. The strength of India's currency, the Rupee (INR) is also weighted against the USD. Till today, countries peg their currencies against the USD to determine their value in the global market. More than 60% of global foreign reserves are in USD, making it the most commonly held reserve currency in the world. It has dominated the financial market and has become the de-facto currency for international trade and transactions. dollar (USD) has been the most powerful currency in the world.
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