Journal Press India^®

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This study focuses on knowing the root causes of rupee depreciation with respect to Bahrain Dinar and Japanese Yen in forex market. It is based on studying the correlation between macro variables which are FDI, FII, CPI and gold price and its impact on INR (Indian Rupee) in terms of BHD (Bahrain Dinar) and YEN (Japanese Yen) respectively. The reason for choosing BHD is mainly because India needs oil, and it has impact on all these macro-economic variables as well as on exchange rate. Similarly, Japan is also very important for the Indian economy as it brings in the FDI, for instance the 100 billion dollar vision fund for India. So it becomes extremely important to know the relation between BHD and Yen on INR on a long term basis. This will help the arbitrageurs, traders, exporters and importers to make use of the opportunity in their favour if there is rupee depreciation in forex market in relation to BHD and Yen.

Keywords

Arbitrageurs; Forex market; Bahrain Dinar; Japanese Yen; Indian Rupee; Depreciation

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