Since, 1 pound was equal to $2.73 at that time, the value of USD vs INR in 1947 can be calculated as 1 USD = 4.76 Rupee.Īs per the Bretton Woods Agreement of 1944, each country was required to peg the value of its currency to the dollar, which itself was convertible to gold at the rate of $35 per ounce. There was no standard system of comparing the world currencies before 1944, so this valuation remained constant. However, as India was a British ruled state before its independence, the value of INR was derived from the British pound. Rupee After India's IndependenceĪs a free country in 1947, India had no foreign debt or credit on its balance sheet. Let's look at the history of the dollar vs rupee since 1947 to understand its journey of depreciation against the dollar. Judging from the value of 72.55 rupees per dollar in the current time, the Indian rupee has been depreciating against the USD in the past 71 years. Geopolitical issues, economic reforms, and international issues have affected its value over the years. Since independence, the Indian currency has been on a roller-coaster journey. If it takes more Indian currency to buy 1 USD, it means that the Indian currency has depreciated and if it takes less, the currency has appreciated. If the value of foreign currency increases, imports get expensive and exports get cheaper. The whole global trade is possible because of its existence.
The exchange rate constantly changes in the global foreign exchange market and is an important determinant of a nation's economic power. The value of 1 USD to INR keeps fluctuating and it is called the exchange rate.
The strength of India's currency, the Rupee (INR) is also weighted against the USD. Till today, countries peg their currencies against the USD to determine their value in the global market. More than 60% of global foreign reserves are in USD, making it the most commonly held reserve currency in the world.
It has dominated the financial market and has become the de-facto currency for international trade and transactions. dollar (USD) has been the most powerful currency in the world.
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