Main Article Content
Abstract
Foreign exchange market is the market in which foreign currencies are bought and sold with the help of exchange rate. Foreign Exchange rate is one of the most important resource through which a country’s relative level of economic health is determined. There are some lending factors which influence exchange rates and because of these factors exchange rates becomes volatile. The macroeconomic factors play animportant role in changing the dynamics of foreign exchange rate. This study explores the study of macroeconomic indicators and its impact onforeign exchange rates in India. In order to trade in exchange market, it’s important to know how these factors can affect exchange rate and currency. After independence value of Indian currency has been decreased.This study examines the impact of Balance of payment and foreign currency reserve on exchange rate in India.