Comparative Analysis of Top 4 Currencies In the world using Mathematical Techniques and Graphs with

International Research Journal of Engineering and Technology (IRJET) e-ISSN:2395-0056

Volume: 09 Issue: 11 | Nov 2022 www.irjet.net p-ISSN:2395-0072

Comparative Analysis of Top 4 Currencies In the world using Mathematical Techniques and Graphs with respect to Rupee

Ansh Rajput Student, Commerce, Sat Paul Mittal School ***

Abstract- This research paper summarizes the “Comparative Analysis of top 4 Currencies in the world with Rupee using Mathematical Techniques and Graphs”. The data has been taken from 1980-2022 We have compared US Dollar, Euro, Pound Sterling, and Japanese Yen concerning Indian Rupee using mathematical graphs and techniques

Keywords- USD, INR, Pound Sterling, Euro, and Japanese Yen

1. INTRODUCTION

Exchangeratesareoneofthemostcrucialfactorsinbusinesssincetheyserveasthebasisfortheexchangeprocess.Exchange rates,whicharedefinedastherateatwhichonecurrencyisalsochangedintoanother,areusedbynationstopurchasegoods orservicesfromoneanother.Whenevaluatingtheseexchangerates,it'scrucialtorealizethattherearetwodifferenttypes of rates nominalandrealtrade thatareappliedtointernationalcommerce.Thenumberofnominalunitsneededtoexchange one unit of one currency for another. The US dollar, Japanese yen, euro, and pound sterling are the four most widely used currenciesintheworld.Myresearchcomparesandexaminesthemostwidelyusedcurrenciesinthe worldconcerningIndian Rupee.

1.1 United States Dollar (USD)

The National Currency of United States of America is USD (United States dollar). To distinguish it from other dollar-based currencies, it is represented by the symbol $ or US$. Several regions outside of the United States use it as their official currency, while other territories utilize it as their sole form of unofficial money The U.S dollaris themostlistedcurrencyin theworld.. Themonetary unitwasa remotesecond withthirty secondsof all transactions. The reach of the U.S.dollarhas resultedinitsindex,theUSDX,whichmaybeaweightedpriceindexagainstabasketofsixdifferentcurrencies;themonetary unit, Japaneseyen,British monetaryunit,franc,Swedishkrona,andalsotheCanadiandollar.Furthermore, the U.S.dollarisa legal tender in manyU.S. territories,as well asthe PuertoRICO Act, Guam, and the U.S.Virgin Islands,as well asthe PuertoRICOAct,Guam,andtheU.S.VirginIslands.

1.2 Indian Rupee (INR)

ThecurrencyunitofIndiaisRupee(INR)andthecurrencysymbolis ₹.Therupiya,asilvercoin firstintroducedbythegreat TurkishSherShahSuriinthe16thcentury,istheoriginofthewordrupee.

Coins with a value of 50 paise or less are called small coins, while coins with a value of one rupee or more are called rupee coins. Paper rupees have denominations written on the back in fifteen different languages, as opposed to the front which containsHindiandEnglish.

Banknotesarechangedfrequently withnewdesignsandnotabledifferencesbetweenthemostrecentseriesof Spirit leader series banknotes and the new banknotes of the same name. The notes include many designs from India's manufacturing heritage.Indiaisacash-basedeconomy,whichhasledtothecirculationofcounterfeitmoneybypeopleengaginginunethical activities.Overtheyears,theReserveBankofIndia(RBI)hasbeenforcedtoreviseandupdatetherupeebanknoteswithnew security features. Terrorists and money launderers produce counterfeit money that can look like legitimate money. High denomination notes are perhaps the most frequently counterfeited. In 2016, the Indian government announced the de-

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monetizationofallSpiritualLeaders500and1000rupeenotes,arguingthatthiswouldcrippletheblackmarketandmakethe use of Illegal and fake profits to help criminals and terrorists become more difficult. A new Spiritual Leaders banknote with more security measures has been introduced to replace the 500 and 1000 rupee notes. Various capital constraints and fungibilityrestrictionshavebeenimposedontherupeeoverthepastfewyears.Itisillegalforforeignnationalstoimportor exportrupeesandonlyacertainamountofrupeescanbeimportedorexportedbyIndiannationalsTomaintainahealthyand balanced capital account, the Indian government alternately loosens and tightens limits on foreign investment, limits golf swingsor eliminatesthem altogether. Thegovernment recently relaxed limits on foreigninvestment inflowsto stabilizethe fallingexchangerateandboostbusinessinvestmentinthecountry.

1.3 British Pound Sterling (GBP)

TheBritishpoundsterling,theofficialcurrencyoftheUnitedKingdom,iscalledGBP.SouthGeorgia,SouthSandwichIslands, British Antarctic Territory, Isle of Man and Channel Islands are all British Overseas Territories. Falkland Islands Pound, PromontoryPound,StCapitalofMontanaPound,JerseyPound(JEP),DairyPound(GGP),ManxPoundandEuropeanNational Note pegged to British Pound just a fraction of the currency. A penny is one-hundredth of a pound. The official name of the GBPisBritishPound.However, "Sterling"orSTGisalsocommonlyusedinaccountingorexchangesituations. Somesymbols aredisplayedinpenceinsteadofpounds.Inthissituation,theexchangemayuseheGBXorGBPtodistinguishbetweenpence andpounds(GBP).TheUSDollar,EuroandJapaneseYenaretheonlycurrencieswithahigherlevelofcommercialactivitythan the British Pound. Approximately 13% of daily trading volume on the interchange market is settled in British pounds. The imageoftheeurois€.Thepoundimageis£.TheEuroandUSDollararethetwomostpopularcurrencypairsfortheBritish Pound (EUR/GBP and GBP/USD respectively). Interchange traders refer to the GBP/USD exchange rate as the "cable". The oldest existingcurrency still inusetoday is the GBPor British Pound. British pounds are represented bythepoundsign(£). However,itisalsosometimescalleda"sterling"or"pound".

1.4 EURO

TheofficialcurrencyoftheEuropeanUnionistheEuro.Itisthesecondmostpopularreservecurrencyintheworldandheis alsothe second most traded currency in the world. The old euro wasissued in 1999 and was an electronic currency until theintroductionofbanknotesandcoinsin2002.Thecurrencyunitisusuallyabbreviatedas"EUR".Monetaryunitsaretheonly meansof exchange introduced together in EU member states. These countries are called the Eurozone, a section whose monetaryunitisacommoncurrency.Fournon-EUcountriesusetheeuroastheirofficialcurrency:Andorra,City,SanMarino and Monaco. The European Financial Institutions (ECB) have the EU's mandate to maintain value stability by protecting the value of monetary units. Those who do not adopt monetary units. The introduction of the currency unit has eliminated currency risk for European companies and financial institutions doing cross-border business within the increasingly integrated EU economy. Commercial and financial requirements for the introduction of monetary units also led to deeper political integrationofmemberstates. Financially laggingfarmers' lenders notonly cutinterest rates butalsovaluetheeuro againstmajorEuropeantradingpartnerstoboostexports.Furthermore,whilemonetaryunitscannotbedemotedtofacilitate economic change within the EU, the common currency will provide an additional trusted repository. Monetary units are still overwhelminglywidespreadamongresidentsofthecountry.

1.5 Japanese Yen

JPYstandsforJapaneseYen,thecountry'sofficialcurrency.TheYensymbolistypical.TheJapaneseYenisthethirdmost tradedcurrencyintheForexmarket.TheJapaneseYenisinitsthirdpositionbehindtheUSDollarandtheEuroasthedollardenominatedforeignexchangereservesarestartingtooverrunduetoofficialreservedenominations.Yen'snamecomesfrom theJapaneseword'en',whichmeanscircle.TheMeijigovernmentreplacedTokugawagoldcoinswithyen.TheBankofJapan (BoJ)wasestablishedin1882asafinancialinstitution.In1884,itwasgiventhemonopolyofissuingcoinsandissuedthefirst yenbanknotesthefollowingyear.ThevalueoftheyenwasshakenbyWorldWarIIandtheAmericanoccupation.Afterthe war,theyen'svalueagainstthedollarfellrapidlyduetohighinflationwhenauthoritiesintroducedaregulatedexchangerate. ThePlazaAccordof1985wasthemaincauseofthedevaluationoftheUSdollarwhichincreasedthevalueoftheyenagainst theUSdollar.

International Research Journal of Engineering and Technology (IRJET) e-ISSN:2395-0056 Volume: 09 Issue: 11 | Nov 2022 www.irjet.net p-ISSN:2395-0072

Table of 4 currencies with respect to Rupee from 1980-2020

Year US DOLLAR POUND STERLING JAPNESE YEN DEUTSCHE MARK/EURO

1980-81 8.1900 18.3800 3.9000 3.9000 1981-82 9.3460 16.6520 3.8000 3.8710 1982-83 9.9700 14.7460 4.2000 4.1090 1983-84 10.7070 15.4460 4.8000 4.1340 1984-85 12.4300 15.4500 4.9000 4.0190 1985-86 12.3061 18.2500 6.8000 5.3020 1986-87 12.8882 20.7490 8.9000 7.1620 1987-88 13.0318 24.3510 10.3000 7.8070 1988-89 15.6630 26.3990 11.8000 8.2590 1989-90 17.3248 28.3010 11.0000 10.1670 1990-91 19.6429 34.0500 13.9000 11.4270 1991-92 31.2256 53.6913 23.2800 18.3501 1992-93 31.2354 46.6200 26.9900 19.2864 1993-94 31.3725 46.5200 35.5200 18.7575 1994-95 31.4950 50.5650 35.2888 22.3600 1995-96 34.3500 52.4300 32.2975 23.3038 1996-97 35.9150 58.6938 28.9463 21.3863 1997-98 39.4950 66.1638 29.7813 21.3350 1998-99 42.4350 68.3588 35.3263 23.2863 1999-00 43.6050 69.5100 41.4825 41.7975 2000-01 46.6400 66.5788 37.4338 41.0113 2001-02 48.8000 69.5863 36.8063 42.6438 2002-03 47.5050 74.9225 39.8925 51.4925 2003-04 43.4450 79.6813 41.6725 53.1725 2004-05 43.7550 82.1125 40.8075 56.5863 2005-06 44.6050 77.7963 38.0188 54.1875 2006-07 43.5950 85.5938 37.0338 58.1513 2007-08 39.9850 79.5138 40.0650 63.0963 2008-09 50.9450 72.8575 51.8900 67.4713 2009-10 45.1350 68.0188 48.4338 60.5913 2010-11 44.6450 71.9163 54.0175 63.2350 2011-12 51.1600 81.7975 62.4250 68.3550 2012-13 54.3893 82.3209 57.7600 69.5438 2013-14 60.0998 99.8498 58.8300 82.5765 2014-15 62.5908 92.4591 52.1100 67.5104 2015-16 66.3329 95.0882 59.0600 75.0955 2016-17 64.8386 80.8797 57.9600 69.2476 2017-18 65.0441 92.2846 61.5400 80.6222 2018-19 69.1713 90.4756 62.5200 77.7024 2019-20 75.3859 93.0760 69.6500 83.0496

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US DOLLAR

0.0000 10.0000 20.0000 30.0000 40.0000 50.0000 60.0000 70.0000 80.0000

1980-81 1984-85 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13 2016-17

POUND STERLING

1980-81 1984-85 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13 2016-17

0.0000 10.0000 20.0000 30.0000 40.0000 50.0000 60.0000 70.0000 80.0000 90.0000

POUND STERLING

US DOLLAR 0.0000 20.0000 40.0000 60.0000 80.0000 100.0000 120.0000

DEUTSCHE MARK/EURO

1980-81 1984-85 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13 2016-17

DEUTSCHE MARK/EURO

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JAPNESE YEN

0.0000 10.0000 20.0000 30.0000 40.0000 50.0000 60.0000 70.0000 80.0000

1980-81 1984-85 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13 2016-17

Relation between US Dollar , GBP , Euro , Japanese Yen with respect to Rupee

120.0000

100.0000

80.0000

60.0000

40.0000

20.0000

JAPNESE YEN 0.0000

US DOLLAR POUND STERLING JAPNESE YEN DEUTSCHE MARK/EURO

1980-81 1983-84 1986-87 1989-90 1992-93 1995-96 1998-99 2001-02 2004-05 2007-08 2010-11 2013-14 2016-17 2019-20

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3. Explanation and Calculations

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4. Conclusion

From graphically as well as mathematical analysis of exchange rates of 4. Currencies w.r.t Rupee it is evident that British PoundSterlinghasthemaximumgrowthratesucceededbyEuro,JapaneseYenandUSDollaralmostatthesamegrowthrate.

References

https://www.investopedia.com/ https://www.sbi.co.in/ https://www.rbi.org.in https://www.japan.go.jp https://www.gov.uk https://www.european-union.europa.eu

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https://www.usa.gov

Biographies

Ansh Rajput

CurrentlystudyinginSatPaulMittalSchoolinclassXII

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Dr. Mamta Jain

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