Historical USD to INR Exchange Rates: 1947 to 2024 Analysis
The United States dollar (USD) is one of the world’s most powerful and commonly traded currencies. The most common benchmark for measuring the strength or weakness of the Indian rupee (INR) is the US dollar. Would you think there was a period when the USD-INR exchange rate was less than five? In 2024, one dollar equals around ₹83.
So, how did the USD to INR exchange rate gradually increase? This page delves into the fascinating USD to INR history, from pre-independence to the present, offering light on key economic events that have created India’s currency landscape.
Also read: Currency Symbols: Rupee Surges 17 Paise to Hit 83.33 Against US Dollar
In 1947, the value of one US dollar in Indian rupees
Although INR was previously worth more than USD, today it is not। When India gained its independence in 1947, the circumstances were entirely different। Traditionally, 1 INR was worth 1 USD.
There are many arguments about how the value of one rupee in 1947 was better। However, the most common reason is that there was no metric system, which means that all currencies had the same value
Another argument is that before 1947, India was a British ruled state, so the INR was worth more because of the pound’s increase in value। In this case, it was thought that 1 Pound in 1947 was equal to 13.37 Rupees, and that is why the value of the US dollar should have been INR 4.16 in that year.
Dollar Vs Rupee History
The history effectively begins with the passage of the Britton Woods Agreement in 1944. This agreement determined the value of all currencies in the world. Everyone was gradually accustomed to it around the time India won independence.
Since India’s independence in 1947, the value of the INR has steadily decreased. According to the contemporary metric system, the value of INR to USD in 1913 should be 0.09, and if we stick to the 1 USD = 1 INR argument, the value increased to 3.31 in 1948 and 3.67 in 1949, and by 1970, the INR was 7.50 to 1 USD.
1 USD to INR from 1947 to 2024
Here’s the USD to INR history since India’s independence, put concisely for you
| Year | Exchange Rate [1 USD to 1 INR] |
|---|---|
| 1947 | 3.30 |
| 1949 | 4.76 |
| 1966 | 7.50 |
| 1975 | 8.39 |
| 1980 | 6.61 |
| 1990 | 17.01 |
| 2000 | 44.31 |
| 2005 | 43.50 |
| 2006 | 46.92 |
| 2007 | 49.32 |
| 2008 | 43.30 |
| 2009 | 48.82 |
| 2010 | 46.02 |
| 2011 | 44.65 |
| 2012 | 53.06 |
| 2013 | 54.78 |
| 2014 | 60.95 |
| 2015 | 66.79 |
| 2016 | 67.63 |
| 2017 | 64.94 |
| 2018 | 70.64 |
| 2019 | 72.15 |
| 2020 | 74.31 |
| 2021 | 75.45 |
| 2022 | 81.62 |
| 2024 (as of May 20, 2024) | 83.28 |
During Economic Reforms and Liberalization – 1991-2000
From 1991 to 2000, India’s economic history underwent significant changes that had a significant impact on the USD to INR exchange rate. Economic reforms and liberalization measures were implemented to open up the country’s economy to foreign investment and reduce trade barriers. The Indian Rupee was partially converted to the current account, allowing for greater flexibility.
By 2000, the dollar exchange had risen to almost 45 to the Indian rupee. The value of the US dollar rose as the Indian government pursued a policy of rupee devaluation to attract foreign capital and fix trade imbalances. Global economic events, such as the Asian financial crisis in the late 1990s, as well as the country’s efforts to modernize its economy, all had a significant impact on the USD-INR exchange rate during these revolutionary years.
Conclusion
The value of INR to USD determines a lot of things. It shows India was an economically backward country and increases the rates of imports. At the same time, travellers flying abroad get less when they convert INR to USD.
read more: Rupee Surges 17 Paise to Hit 83.33 Against US Dollar
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