how is the dollar and rupee equation generated?

Question

i want to know how the rupee and dollar equation created.what parameters are taken to consideration

Answer 1

There is no constant equation that relates one currency to the other. One currency is related to the other currency by the strength of the economy of that currency's country has in the world market. That is why currencies exchange rates go up and down through time depending directly on the performance of the economy in question.

Answer 2

by buying and selling -- there is a market for currencies.

The rupee is traded for more than its market equilibrium value because of restrictions on taking rupees out of the country.