Exchange Rate Of Indian Rupee Against Us Dollar
The exchange rate between the Indian Rupee (INR) and the United States Dollar (USD) is an important factor for both countries. It is the rate at which one currency can be exchanged for another. In this article, we will discuss the current exchange rate of INR against USD and the factors that affect it.
Current Exchange Rate
As of August 2021, the exchange rate of INR against USD is approximately 74.50. This means that one US Dollar can be exchanged for 74.50 Indian Rupees. The exchange rate is constantly fluctuating and can vary from day to day.
Factors Affecting the Exchange Rate
Several factors can affect the exchange rate between INR and USD. One of the main factors is the economic performance of both countries. If the Indian economy is doing well, the demand for INR increases, and its value rises against USD. Similarly, if the US economy is performing well, the demand for USD increases, and the value of INR falls against it.
Political stability, inflation rates, interest rates, and international trade policies are other factors that can affect the exchange rate. For example, if the Reserve Bank of India (RBI) decides to raise interest rates, it can attract foreign investors, which increases the demand for INR and its value rises against USD.
Historical Exchange Rates
The exchange rate between INR and USD has been volatile over the years. In the early 2000s, the exchange rate was around 45 INR per USD. However, due to various global and domestic factors, the exchange rate has fluctuated widely, and in 2013, it reached an all-time low of 68.8 INR per USD.
Since then, the exchange rate has been relatively stable, and in recent years, it has hovered around 70-75 INR per USD. However, the COVID-19 pandemic has had a significant impact on the exchange rate, and in March 2020, the exchange rate briefly touched 76 INR per USD.
Impact of Exchange Rate on Economy
The exchange rate between INR and USD has a significant impact on the Indian economy. A weaker INR makes imports expensive, which can lead to inflation. On the other hand, a stronger INR can make exports expensive, which can hurt the economy's growth. Therefore, the RBI constantly monitors the exchange rate to ensure that it does not have a negative impact on the economy.
Conclusion
The exchange rate of INR against USD is an important factor for both India and the US. It is affected by various economic and political factors and can have a significant impact on the Indian economy. By understanding these factors, investors and businesses can make informed decisions about currency exchange and investments.