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This price is known as the Exchange Rate. For that reason, it is important to know at what price domestic currency can be converted into foreign currency. The person has to convert the Indian rupee into US Dollars ($), only then he/she can stay there. For example,if a person visits New York for vacation, he/she can not use the Indian rupee (₹) in New York for economic transactions. Therefore, in the case of international transactions, the domestic currency is converted into foreign currency. The currency used in other countries is treated as foreign currency for India. But the Indian rupee (₹) can not be used as a medium of exchange outside India. For example, for an Indian resident, the Indian rupee (₹) is a domestic currency that can be used as a medium of exchange in India.