Financial Market: Real Effective Exchange Rates: CPI Based for India

CCRETT01INQ661N • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

103.53

Year-over-Year Change

-1.68%

Date Range

1/1/1970 - 4/1/2025

Summary

The Real Effective Exchange Rate (REER) for India, CPI-based, measures the value of the Indian rupee relative to a basket of trading partner currencies, adjusted for differences in consumer price inflation.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The REER is an important economic indicator that reflects a country's international price competitiveness. It is used by policymakers and analysts to assess the impact of exchange rate movements on a country's trade and economic performance.

Methodology

The REER is calculated by the Bank for International Settlements using trade weights and consumer price indices.

Historical Context

Trends in the REER are closely monitored by the Reserve Bank of India and influence the country's monetary and trade policies.

Key Facts

  • The base year for the India REER index is 2010 = 100.
  • REER increased from 95.72 in January 2018 to 99.31 in January 2023.
  • A rising REER indicates an appreciation of the Indian rupee.

FAQs

Q: What does this economic trend measure?

A: The India REER measures the value of the Indian rupee relative to a basket of currencies from India's major trading partners, adjusted for differences in consumer price inflation.

Q: Why is this trend relevant for users or analysts?

A: The REER is an important indicator of a country's international price competitiveness, which affects its trade balance and economic performance. Trends in the REER are closely monitored by policymakers.

Q: How is this data collected or calculated?

A: The REER is calculated by the Bank for International Settlements using trade weights and consumer price indices.

Q: How is this trend used in economic policy?

A: Trends in the India REER influence the Reserve Bank of India's monetary and trade policies, as it reflects the country's international price competitiveness.

Q: Are there update delays or limitations?

A: The India REER data is published monthly with a lag of approximately one month.

Related Trends

Citation

U.S. Federal Reserve, Financial Market: Real Effective Exchange Rates: CPI Based for India (CCRETT01INQ661N), retrieved from FRED.