Understanding Currency Markets and Exchange Rate Dynamics

A macro-first look at how currency markets work and why exchange rates move, built for investors and finance professionals who want the theory and the mechanics, not a trading manual. Starts with how the rupee is actually quoted and priced day to day (spot, forward, RBI reference rate, NSE currency futures), then builds the three classical frameworks economists use to explain exchange rates: purchasing power parity, interest rate parity, and the balance of payments approach. From there it moves into the real-world forces that move the rupee: FPI and FDI flows, the crude oil bill and the current account, and the US dollar index and global risk sentiment. Every concept is anchored to Indian data and events, from RBI intervention and forex reserves to the rupee's slide past 83 to the dollar.