In India, most of the people want to know the history data of Indian rupee against dollar from 1947 to 2021. How Rupee value has been increased against Dollar. During the independence, value of 1 dollar was equal to 1 Rupee. What happen that India rupee is continuing devalued in previous 70 years. Today, condition is like that we are paying 73 rupee (₹) for getting 1 dollar ($). Let’s take you to the journey of the decreasing slope of rupee which is from starting 1947. We will tell you the reason of the decreasing or increasing value of currency.
Reasons of Rupee devalue from 1947 to 2021
Before getting India independence, there was rule & effect of British. When India got independence in 1947, then Rupee vs Dollar trend was like that 1 Dollar = 1 Rupee. However, rupee was continue to be devalued due to political and economical change after independence. When India implemented the first panchvarshiye yojana (Five-Year Plan), it need loan from foreign for growth. Due to which India first time has to devalued the rupee against dollar.
Increase Foreign Investment & Export so that foreign reserve can be increased. Understand it by example, If rupee value will be less, then person outside of India country will import more from India. That’s only the reason that any one of country decrease their currency value to enhance the export.
After Independence, India has applied the Fixed Rate Exchange System. With the help of this system, government was decided that what will be the value of the rupee against dollar. Rupee was decreased by 4.79 paise against dollar due to this system after 1948.
In 1965-68, India rupee value reached to 7.57 paise due to decreasing of foreign reserve value (i.e. buying of ammunition from foreign country).
In 1971, India rupee link has been removed from British pound and linked directly to dollar. After this, rupee was decreased to Rs. 8.39 (= 1 $) till 1975.
In 1985, rupee value reached to 12 rupee against 1 dollar . In 1991, this year was becoming very heavy on Indian economy and foreign reserve was almost dried. For alive the economy and foreign reserve, rupee value has again been decreased (i.e. 1 Dollar = 17.90 Rupee)
All the plans of government to stable rupee was failed. Due to this in 1993, government has replaced the fixed rate exchange with flexible rate exchange (i.e. now market will decide the value of rupee). After this, some power has also been given to RBI and rupee become 31.37 paise against 1 dollar.
In 2010, rupee become 45 against 1 dollar. In 2018,1 dollar value reached to 71 rupees.
Value of Rupee Depends on
- Current Account Deficit (If Import> Export, foreign reserve become low.)
- Interest Rate (If interest rate will be high, then person from foreign will invest more in India.)
- Growth Rate
- Business loss
- Slow down of Equity market.
- Foreign rate reserve. (If one country has more foreign rate reserve, its currency will also be strong. If foreign rate reserve decrease, currency value has also decreased.)
- Import and export. (If one country is exporting to foreign, then more foreign currency will come in country and foreign reserve become more and strong the currency.)
Government require to make balance in currency because if the value of currency of country will high, then foreign country will purchase less thing from country. Understand it by example, If 1 dollar is Rs. 50, then businessman of America will buy less thing from India. In other hand, If 1 dollar become Rs. 60, then foreign country will buy more things from India.
Rupee against Dollar Today
Today, one most important reason of the devalued of the Indian currency is increasing price of oil. Due to this country is paying more to the foreign in foreign currency and foreign rate is decreasing.
Rupee vs Dollar
|YEAR||1 USD TO INR||YEAR||1 USD TO INR|
|16 Aug, 2018||70.30||12, Sep, 2018||72.88|
|20 July 2020
||74.74||27 August 2020||73.78|
|15 January 2021
Indian Rupee against Dollar PDF can be found by clicking on below link.
Indian Currency vs US Currency pdf will be uploaded soon.
Rupee against Dollar Graph
Indian Rupee INR against Dollar graph can be viewed below trends.
All the best for your upcoming exam!
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