Who decides the Value of ₹ against $? | Currency Exchange System |?

The value of ₹ against $ is decided by people who trade money all day long, like a big game of trading cards.

Imagine you and your friend both have a bag of trading cards. You agree that 1 red card from you is worth 2 blue cards from your friend. But if more people want red cards than blue ones, the value changes, now maybe 1 red card is worth 3 blue cards! That’s how it works with money too.

There are groups of traders who buy and sell ₹ and $ all day long. They’re like the biggest kids in the class who know exactly what everyone wants. If a lot of people want to buy ₹, its value goes up against $. If fewer people want it, its value goes down.

They look at things like:

• How much money people have
• What countries are doing (like if they're spending more or saving more)
• What other people are buying and selling

It’s like guessing how many cookies everyone wants, you adjust your price depending on what others think. That's how the value of ₹ against $ is decided every day!