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Question

The spot rate of USDINR on 1st January 2023 is 83.78. If the spot rate moves to 85.06 on 6th Sep 2023, which of the following is correct about the INR?

A the INR has appreciated by 1.53% Correct Answer Incorrect Answer
B the INR has depreciated by 1.53% Correct Answer Incorrect Answer
C the INR has appreciated by 1.50% Correct Answer Incorrect Answer
D the INR has depreciated by 1.50% Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

The movement in currency = (new rate – old rate) / old rate = (85.06-83.78)/83.78 = 1.53% The INR has depreciated as the value has reduced as against the USD.

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