As you are well aware, the exchange rate of the rupee reflects international as well as domestic market conditions. Over the 12-month period ended March 2003, it may be observed that the US dollar has weakened significantly on international financial markets. The Japanese yen, Pound Sterling and the Euro have appreciated against the US dollar.
It is of course misleading in another way to talk of these three market segments as if they were separable. They are in fact closely interdependent, and liquidity in each of the three parts benefits from the liquidity of the others. As a related point, the Australian dollar market  2  APRA data on banks’ off-balance sheet business as at end June 2011.