It tracks periodical changes in prices and is thus monitored closely by policy decision-makers, analysts, businesses and consumers. 

Let's look at how factors like interest rate hikes, imports and exports, employment, and foreign exchange reserves affect the rupee's movement.

The idea is that people will spend less if borrowing money or carrying a balance on a credit card costs more.

Indices recovered from their lows and Nifty closed above the 17,300 level. The benchmark index slipped 1.40 per cent on Monday while Sensex tanked 861 points.

On Monday morning the markets fell sharply, as the Asian markets globally plunged by 3 per cent amidst weaker global cues. The International Monetary Fund, on Saturday, said that the war between Russia and Ukraine will have a severe effect on the global economy as the commodities prices have already surged, coupled with the harm to human life and the unprecedented sanctions on Russia.