IMPACT OF SELECTED ECONOMIC VARIABLES ON THE USD/INR EXCHANGE RATE

The regression analysis technique followed by the analysis of variance was employed to investigate the impact of economic variables on the USD/INR exchange rate. The empirical study was conducted from 2007-2008 through 2018-2019. The study reveals that the R2 value is 0.906 which indicates that a 90.6% effect on USD/INR exchange rate to explanatory variables under study such as GDP, Inflation, Call money rate, Export growth, and Import growth. The p-value found to be significant at 0.05 LOS. The F static estimate found to be 11.583 which represents a significant impact of explanatory variables on the USD/INR exchange rate. Abbreviations: GDP, Gross domestic product, ER, Exchange rate, IN, inflation, CR, call money rate