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The price of one currency in terms of another currency i.e., exchange rate is a very important variable for an open economy in the global market, because it affects the overall economic performance and growth of the economy. So, the relationship between the related macro-economic factor and exchange rate causing fluctuation in the value of the former carries a high degree of impact for any open economy. This paper empirically investigates the impact between macro-economic factors that affect the price of Indian currency (Rupee) and their inter-relationship with the latter. The OLS regression result indicates that Inflation, Trade balance, Current account, Money supply and Interest rate jointly affect 92.4% of dependent variable i.e., Exchange rate.