The article explores how the US dollar and euro impact the Indian stock market. The researchers found that the current account deficit in India has been increasing, leading to more volatility in the exchange rate. The influx or exit of capital affects the currency market, with the dollar being a major source of contagion due to high FII involvement. The Reserve Bank of India introduced currency futures to hedge against exchange rate fluctuations. Previous studies have shown a link between stock prices, exchange rates, and FII investments in India, but no long-term relationship between exchange rates and stock prices has been established.