Exchange Rate Us Dollar To Indian Rupees History
Introduction
Exchange rate refers to the value of one currency against another currency. It is the rate at which one currency can be exchanged for another. The exchange rate between the US dollar and the Indian Rupees has been a topic of interest for many years, especially for those who are involved in international trade, foreign investment, or currency exchange. This article explores the history of the exchange rate between the US dollar and Indian Rupees.
Pre-Independence Era
Before independence, India was under British rule, and the currency used was the Indian Rupee. The exchange rate between the Indian Rupee and the US dollar was fixed in 1898 at INR 15 to USD 1. This rate remained unchanged until 1917 when it was revised to INR 11.33 to USD 1. In 1920, the rate was further revised to INR 6.33 to USD 1.
Post-Independence Era
After India gained independence in 1947, the exchange rate between the Indian Rupee and the US dollar was fixed at INR 4.76 to USD 1. This rate remained unchanged until 1966 when it was devalued to INR 7.50 to USD 1. In 1971, the exchange rate was again revised to INR 11.20 to USD 1.
Liberalization Era
In 1991, India adopted liberalization policies, which led to significant changes in the exchange rate between the Indian Rupee and the US dollar. The exchange rate was determined by market forces, and the Reserve Bank of India played a minimal role in determining the exchange rate. In 1991, the exchange rate was INR 17.50 to USD 1. By 1995, the exchange rate had increased to INR 32.42 to USD 1.
Recent Years
In recent years, the exchange rate between the Indian Rupee and the US dollar has been volatile. In 2010, the exchange rate was INR 45.67 to USD 1. By 2013, the rate had increased to INR 68.80 to USD 1. In 2018, the exchange rate was INR 67.00 to USD 1.
Factors Affecting Exchange Rate
The exchange rate between the Indian Rupee and the US dollar is affected by several factors. These factors include inflation rates, interest rates, balance of trade, political stability, and economic growth. Fluctuations in these factors can lead to changes in the exchange rate.
Conclusion
The history of the exchange rate between the US dollar and Indian Rupees is a fascinating topic that highlights the changes and developments in the global economy. The exchange rate has undergone significant changes over the years, and factors such as political stability, economic growth, and inflation rates have played a crucial role in determining the exchange rate. Understanding the factors that affect the exchange rate can help individuals and businesses make informed decisions when it comes to international trade, foreign investment, or currency exchange.