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In this article, you will know briefly about the US Dollar and Indian Rupee rates, the lowest and the highest, dollar to Indian rupee rate, factors affecting the current status of both the currencies. The dollar rate to Indian rupee today is 76.54. The United States dollar (USD) has been the most powerful currency and it has dominated the financial market and has become the de-facto worldwide commerce and transaction currency. The USD accounts for more than 60% of worldwide foreign reserves, making it the most widely held reserve currency on the planet. Until now, countries have pegged their currencies to the US dollar in order to establish their value in the global market.
HISTORY
Since independence, the INR has faced a number of events that have affected its value. A number of economic crises, devaluation, World Bank loans and privatisation have all played a role in degrading the value of 1 USD to INR. The US federal funds rate has remained unchanged at 0.25 percent for the last 10 years, including the Great Recession. This has an impact on the current exchange rate of INR to USD. The dollar rate in Indian Rupee keeps fluctuating, and it is the exchange rate. The value of the Rupee (INR), India’s currency, is also weighed against the US dollar. 1 INR was never equal to 1 USD according to official data.
- Factors that influenced the current state of the Indian Rupee (INR)
Since independence, the INR has faced a number of events that have affected its value. A number of economic crises, devaluation, World Bank loans and privatisation have all played a role in degrading the value of 1 USD to INR. The US federal funds rate has remained unchanged at 0.25 percent for the last 10 years, including the Great Recession. This has a great effect on the current exchange of dollar rate in Indian rupee.
- Dollar rate in Indian Rupee during 1947
In 1947, the value of one US dollar was equal to one Indian rupee. Currently, the value of INR is less than US dollars, however this was not the persistent case. The scenario was substantially different when India got its independence in the year 1947. It is considered that 1 INR equals 1 USD. There are several theories as to why one rupees worth more during 1947. However, because there was no metric system in place, all currencies had the same value.
- Factors that played role in the current status of conversion of Dollar rate to rupee today
- SOME KEY FACTORS THAT MADE THIS HAPPEN
- Decimalisation
In 1957, the decimal system was implemented. During this time, the Indian rupee was divided into 100 naye paisas (new paisas in Hindi/Urdu). The prefix naye was dropped, but the value remained the same. The inclusion of lesser values in Indian currency not only made money more available to all Indian citizens, but it also boosted the value of the INR.
- Economic disasters in 1966
- India was still a developing economy at the time. It is projected that India will import more than it exports in such conditions.
- Since the 1950s, India has experienced a continuous balance of payments deficit.
- Another aspect that contributed to the rupee’s dramatic depreciation of 57 percent, bringing its value to Rs 7.5/$.
- 2013 depreciation
During the year 2013, the value of Indian rupees was 55.48 per dollar, and fifteen days later, the value declined to 57.07 per dollar. There was a sudden increment in the demand for dollars for capital withdrawal and imports, which led to the decline of the value of Indian rupees.
- 2016 demonetisation
The Indian government at present, took steps in 2016 to shift older currency notes and replace them with new ones. Much was said and done about the move, ultimately causing the INR to decline upto a range of 67 to 71 in the preceding years.
CONCLUSION
The value of the Indian rupee has been changing since a lot of years. The Indian Rupee is eventually falling as compared to the US Dollar. Since independence, the Indian Rupee has been subjected to a number of events that have lowered its value. Multiple economic crises, privatisation, devaluation, and World Bank loans have all played a role in deciding the value of 1 USD to INR. The US federal funds rate remained constant at 0.25% for the last 10 years, which includes, the Great Recession of the year 2008. This has an impact on the present exchange rate of currency.
