Finance, Forex and Investments

In India who decides rates of foreign currencies such as $ or £ or €?

better if you tell the procedure they adopt

Public Comments

1. The market. If you want to buy a Euro or a dollar or a pound, you have to bid against other people who want to buy them. The more who want them, the higher the price will be, and vice-versa.
2. The market, and to some extent government policy. The demand for foreign currency is often dictated by the need to pay for goods and raw materials from abroad. When that happens, the customer will usually have to sell rupees and buy a more international currency. The relative demand for each currency dictates whether they exchange at a higher rate (high demand) or a falling rate as demand for that currency also slows down. It's basically a form of gambling!