Article
“Dollar Dominance and Rupee Resilience: Assessing the Impact of Geopolitical Shocks on India’s Currency and Stock Markets”
The world is seeing more problems between countries and this is changing the way money moves around the world. Things like the financial problem in 2008 the trade issues between the US and China the COVID-19 pandemic, the war between Russia and Ukraine and the troubles in the Middle East have shown that when countries are not getting along it can affect how much money is worth in different countries how much money is moving around what things cost and how well the stock market is doing. India is a country that is still growing and it is very connected to the rest of the world when it comes to trade and money. The Indian financial markets are very sensitive to these kinds of problems. The US dollar is still the currency in the world so when the value of the US dollar compared to the Indian rupee changes it can have a big impact on Indias financial markets. This study is about how problems between countries affect the value of money the stock market and Indias economy. The study uses the Geopolitical Risk Index to measure tension between countries. It looks at how the value of the US dollar compared to the rupee is changing. It also looks at how the main stock market indexes in India like the Sensex, Nifty 50 and Bank Nifty doing. The study wants to understand how problems between countries affect the stock market and make it more unpredictable. Problems between countries can affect the stock market directly. They can also affect the stock market through changes in the value of money like the US dollar and the Indian rupee. It shows that the currency market is an important way that global problems can affect the stock market in countries that are still growing like India.