EUR is the official currency for 19 of the 28 members of the European Union (EU), including Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Cyprus, Estonia, Latvia, Lithuania, Malta, Slovakia and Slovenia. The euro is also known as the euro currency, and is the second most traded world currency after the US dollar. The name “Euro” was introduced in 1995, replacing the former European Currency Unit (ECU), which was the currency in circulation. However, as the EU’s common currency, it was not introduced until 1 January 1999 and began circulating in 2002. The euro is divided into 8 coins. namely 1, 2, 5, 10, 20 and 50 cent coins and 1 and 2 euro coins, and the most commonly used denominations of euro banknotes are 5, 10, 20, 50 and 100.
On the other hand, the Indian Rupee (quoted currency) is the Indian national currency, also known as the INR. INR is usually represented by the symbol ₹. The Indian Rupee (INR) is named after the rupee, a silver coin first issued by Sultan Sher Shah Suri in the 16th century. For now, currency issuance is managed by the Reserve Bank of India. Currency management in India could be considered as one of the basic tasks of the Indian Reserve Bank. Moreover, the Indian Reserve Bank also plays an important role in the Indian Government’s Development Strategy, issuing statements and decisions on the country’s interest rates.
From a historical point of view, the new rupee sign (₹) was officially approved in 2010. The creator of the symbol, D. Udaya Kumar, performed it by combining the Devanagari consonant “र” (ra) and the Latin capital letter “R” without its vertical stripe (similar to R rotunda ). It should be noted that the first series of coins with the new rupee sign began circulating on July 8, 2011. Prior to that, India used “₨” and “Re” as symbols for multiple rupees and one rupee.
As for the coins, I remind you that Indian coins are issued in denominations of 50 paise, one rupee, two rupees, five rupees and ten rupees. So the defeat is 1/100 of a rupee. Coins worth 50 paise are called small coins, while coins equal to or larger than one rupee are known as rupee coins.
Paper currency or banknotes in India are issued in denominations of 5, 10, 20, 50, 100, 500 and 2000 rupees. It is worth mentioning that the denominations are printed in 15 languages on the back of paper rupees. On the front, the denominations are printed in Hindi and English.
Typically, Indian banknotes are updated with new designs, including marked differences from the old Mahatma Gandhi banknote to the new banknotes of the same name. The notes show various themes drawn from the rich Indian culture.
What is EUR / INR (Euro / Indian Rupee)?
In forex pairs, one currency is always quoted relative to another because currencies are traded in pairs. Thus, the currency pair EUR / INR represents the euro trading against the Indian rupee. In this case, the first currency (EUR) is the base currency and the second (INR) is the price currency. It shows how much the EUR is worth, measured in relation to the INR. For example, EUR / INR = 70.9272 indicates that 70.9272 Indian rupees can be bought for one euro.
The main factors affecting the currency pair EUR / INR
The value of the EUR / INR currency pair is mainly influenced by geopolitical factors and global sentiment, as is the case with many developing currencies, as foreign players withdrew from the Indian stock market, contributing to the fall of the Indian rupee. Across the pond, the INR currency has a strong correlation with crude oil prices, as WTI Crude makes up a significant part of India’s total imports. Thus, rising crude oil prices are hurting the Indian economy. If the price of WTI crude oil rises further, it will not only affect the stability of the rupee and growth in stocks, but could also produce an inflationary effect.
On the euro side, the euro is mainly affected by the following factors.
- Monetary policy of the European Central Bank (ECB),
- Employment rates, job creation,
- Budget deficit and level of government debt in euro area countries
- Domestic and international policies
- Economic growth in euro area countries.