Does Indian rupee have a market-determined exchange rate?

S/. Officially, the Indian rupee has a market-determined exchange rate. However, the Reserve Bank of India trades actively in the USD/INR currency market to impact effective exchange rates. Thus, the currency regime in place for the Indian rupee with respect to the US dollar is a de facto controlled exchange rate.

Why is the rupee a currency?

The rupee symbol was adopted to represent the Indian Rupee internationally, and the currency conversion restrictions were lifted to promote foreign trade and investments. The Rupee continues to be an integral part of India's economy and its value is closely monitored by the Indian Government to ensure economic stability and growth.

Is India a fake currency?

The Indian rupee is the currency of India; INR is its currency code, and the currency symbol is ₹. Since India is a cash-based economy, fake currency has been circulated by those engaged in illegal behavior. To prevent fraud, the Reserve Bank of India over the years has changed and updated the rupee notes with new security features.