New answers tagged currency
1
Technically, you didn't gain 100 INR.
The FX fluctuations - theoretically - represent Purchase power of the currency. Ie. how much things a currency can buy in exchange. the higher the purchase power, the stronger the currency.
The 100 INR that you got higher - is on account of INR's weakening of purchase power. When you paid 7000, and got back 7100, the ...
2
When you bought the product, the company wanted $100 USD. But because you didn't have USD, it charged you INR. In order to determine how much INR to pay, the conversion rate on that day was used. (I'm not sure if you sent INR to the company, or if you used your bank's website to send USD using the bank's conversion feature.) So it looks like the conversion ...
0
Currency works the same way as stocks or gold etc do. You "bought" $100 at some point in time and you "sold" the $100 later in time. During the time when you owned the $100 the price for dollars went up, so you made a profit. If the price would have dropped you would have made a loss.
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