Supply and demand factors in the foreign exchange market are often what drive exchange rates.
The exchange rate is the cost involved in converting one currency into another. The vast majority of exchange rates are classified as floating and alter in reaction to supply and demand in the market. Some exchange rates are predetermined or connected to the value of a specific country's currency.
The Reserve Bank of India Act, 1934 contains the legal guidelines guiding the administration of foreign exchange reserves. For two key reasons, the Reserve Bank's reserves management function has increased in recent years in both importance and sophistication.
To know more about rate visit:-
https://brainly.com/question/14731228
#SPJ4
