The currency in your wallet is always on the move. The value of a county’s currency is linked with IST own economic conditions and policies . Shops accept currency notes and coins,but they also accept credit cards. Is credit card money?
Money is the value assigned to a commodity,a piece of paper,a coin or electronic data( online banking and credit cards). It can also be of different types- commodity money, representative money,etc. Good coins,cattles or anything that has a value of its own and is used as a medium of exchange is commodity money. The use of commodity money now similar to barter, except that the commodity used is widely accepted and can be easily handled.
Dollar corrected against it’s major crosses after been reaffirmed by the central bank that it would use it’s tools and act as appropriate to support the economy. While been said by Jerome Powell said that the “fundamentals of the US economy remain strong”,he also noted that ” the coronavirus poses evolving risks to economic activity” and that it is closely monitoring developments and their implications for economic outlook.
Rupee was said to have risen sharply against the US dollars together with other Asian countries as investors dumped emerging markets assets to seek the safety of US treasuries and assets like gold,amod the rapid spread of the coronavirus epidemic outside China.
The central bank has warmed that downside risks to global growth have increased as a result of the coronavirus epidemic,the full effects of which are still unfolding.
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It was also noted that an improvement in global risk sentiment has lifted the rupee against the US dollars and also a sharp fall in the oil prices has supported the rise in rupee against dollars.
Another factor is the difference in interest rates between countries. Considering RBI recent move to deregulate interest rates on savings deposits and fixed deposits held by non- resident Indians (NRIs). The move was a part of a series of steps to stem the fall in the rupee by allowing banks to increase rates on NRI rupee accounts and bring them on a par with domestic term deposit rates,the RBI expects funds inflow from NRIs,triggering a ride in demand for rupees and an increase in the value.