<h1>Indian Rupee's Exchange Rate Impact: 3.7% REER Appreciation in 2015-16 Boosts Trade and Economic Stability.</h1> The Indian Rupee's exchange rate against the US dollar affects various sectors of the Indian economy, influenced by factors such as export-import elasticity and global commodity prices. Despite a nominal depreciation, the softening of international commodity prices, especially crude oil, positively impacts imports, trade, and macroeconomic stability. The Real Effective Exchange Rate (REER) saw a 3.7% appreciation in 2015-16 compared to the previous year. The rupee's average exchange rate depreciated from Rs. 54.4 per US dollar in 2012-13 to Rs. 64.6 in 2015-16. The exchange rate is market-driven, with the government and RBI monitoring and adjusting policies to ensure economic stability.