Does Conversion rates affect the profit earned? About $~\$100~$ were given to me as an initial investment. I converted them to INR and traded with it in buying stocks and also selling stocks. I am now left with say $~$*Rs.*$6000~$ today. As all of you are aware that USD prices varies from day to day, I am in a fix as to understand that I really made any profit or not.
My questions are


*

*How to know whether I made any profit or loss?

*How to calculate my profits if any?

*Is there any inverse relationship between USD and INR? In the sense, will a increase in conversion rates, increase USD and decrease INR values
Any insight will be appreciated
 A: Ad 1) 
Your initial investment (in rupee) is 
$ 100\text{USD} \cdot \frac{61.85 \ \text{INR}}{ 1\text{USD}}=6,185 \ \text{INR}$. 
The (absolute) profit is then $6,000 \ \text{INR}-6,185 \ \text{INR}=-185 \ \text{INR}.$
This profit is negative, thus you have a loss of $185 \ \text{INR}$
And your relative profit is $\frac{6,000 \ \text{INR}-6,185 \ \text{INR}}{6,185 \ \text{INR}}\approx -0.03=-3\%$
Ad 2) 
I think you can conclude the general formula.
Ad 3)
If you convert USD in INR, than you have the conversion rate $\frac{x \ \text{INR}}{ 1\text{USD}}$. You get x rupees for 1 dollar. If the dollar increase, you get more rupee for one dollar. Thus x has to be increased. You can also say, that the rupee decreases. 
If the dollar decreases, you get less rupee for one dollar. Thus x has to be decreased. You can also say, that the rupee decreases.

If you convert INR in USD, than you have the conversion rate $\frac{y \ \text{USD}}{ 1\text{INR}}$. You get y dollars for 1 rupee. If the ruppee increases, you get more dollars for one rupee. Thus y has to be increased. You can also say, that the dollar decreases. 
If the ruppee decreases, you get less dollars for one rupee. Thus y has to be decreased. You can also say, that the dollar increases. 
