Question

In recent years, Indian Rupee has been strong against which of the following currency?

  1. Yen
  2. Euro
  3. Dollar
  4. Pound sterling

Answer:

Option A: Yen

Detailed Solution:

The correct answer is “Yen”.

Simply put, the rupee's "effective" depreciation of 32.2-40.2% against the currencies of all major trade partners of India over the last 20 years has been lower than its corresponding depreciation of 45.7% against the US dollar alone for this period.