Finance, Forex and Investments

why is our indian currency value low compared to us-dollars & englands pounds?

Public Comments

1. Cuz you're Inda! You've got like 10 bagillion people there and worship elephant gods. Here you can only drive taxi cabs or work at gas stations.
2. because the US is the Almighty dollar
3. THE BEST WAY IS TO ASK YOUR GOVERNMENT. SECOND, PEOPLE IN ENGLAND AND USA MAKE MORE MONEY, THAN IN INDIA. BESIDE THAT, SINCE LONG TIME US DOLLARS AND ENGLAND POUNDS ARE WORLD KNOWN, AND YOUR MONEY IS NOT.
4. Because it is like anything else, in connection with the law of offer and demand. There is more product being bought in pounds and dollars then rupees at this time. The more people on the planet want to pay for products in rupee, the most high the value will fluctuate. There is other factor apart that can put an influence over a currency value. In the case of the united states, they made a deal to get all petrol sales made in US dollars, that of course made the currency to go high. We don't know yet how the USA will deal with the down spiral on these deals, since there is a lot of petrol suppliers who are thinking to switch to Euro and also the pretty high probability that petrol will become scarce before 2050. Just the thought of that plus big spendings made by the USA have weakened the dollars to a point not seen in about 30 years. If all petrol supplier would stop to sell in US dollars tomorrow, the very own value of it would go down to a very catastrophic value and the economy of lots of countries would be affected. The value of the money is also related to thrust people put in it, and its government. A money can be boosted by a higher interest rates, when people see that a relatively safe country offer investments opportunities with high interests, they tend to invest more, but interest that are too high would be too expensive to pay back and people would reserve to invest if they believe the environment is not safe enough. All of this, and there would be enough to write a whole book about it, resume to a simple economic concept: Offer and demand.