arbiter
JournalsPricingAccount

Factors in the Determination of India’s Nominal Exchange Rate Behaviour

Suman Das & Saikat Sinha Roy

South Asian Journal of Macroeconomics and Public Finance2025https://doi.org/10.1177/22779787241312498article
AJG 1ABDC C
Weight
0.50

What the paper says

This article investigates into the factors that determine the rupee–US dollar spot exchange rate particularly after the global financial crisis in 2008. In particular, the role of market fundamentals is looked into. To achieve this, an eclectic empirical model is estimated not paying heed to any particular theoretical framework. As empirical strategy, the Autoregressive Distributed Lag (ARDL) and Error Correction (ECM) models are estimated using monthly data ranging from 2008:04 to 2023:03. The model suits the data well. Cointegration and error correction are found to exist. The empirical results suggest the presence of a long-run relationship between the exchange rate and the macroeconomic variables. The results further emphasize that in the event of any short-run disequilibrium, the errors correct to reach the long-run equilibrium exchange value. The empirical results, so obtained, have policy implications in an episode of misalignment in the exchange rate leading to sharp appreciation or depreciation. JEL Classification: F31, F41, C32

Open paper page →

Cite this paper

https://doi.org/https://doi.org/10.1177/22779787241312498

Or copy a formatted citation

@article{suman2025,
  title        = {{Factors in the Determination of India’s Nominal Exchange Rate Behaviour}},
  author       = {Suman Das & Saikat Sinha Roy},
  journal      = {South Asian Journal of Macroeconomics and Public Finance},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1177/22779787241312498},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Factors in the Determination of India’s Nominal Exchange Rate Behaviour

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.