all country currency rate in indian rupees list 2020

Hence, exchange rate expectations can be of particular relevance for the transmission of information or policy shocks.

Consequently, the path of dollar exchange rates should also incorporate the effects of domestic lockdown policies relative to the US.

Given their importance for macroeconomic outcomes over this period, policy measures conducted during the pandemic potentially play an important role in this regard. The fact that exchange rates are expressed in relative terms opens up an interpretation in terms of the expected economic effects of the pandemic. A general perspective on exchange rate movements can be derived based on the framework of Engel and West (2005) which argues that the exchange rate can be expressed as the discounted sum of observable and unobservable macroeconomic fundamentals. While recent research has focused on spot market movements over the COVID-19 period, little is known about the expected path of exchange rates during the pandemic. However, currency markets remained overall stable in 2020 which also reflects the global scale of the pandemic given that bilateral dollar exchange rates mirror information about two economies. An increase in confirmed COVID-19 cases also significantly raises exchange rate volatility which initially increased in 2020 ( Feng et al., 2021). Gräb et al. (2021) show that positive information about vaccine news increases the price of assets which experienced a drop in prices and has a positive net effect on financial conditions. Stock markets recovered quickly from an initial sharp drop and currency markets have also shown some distinctive patterns. The response of financial markets to the COVID-19 pandemic has attracted great interest among researchers.

All country currency rate in indian rupees list 2020