A BASIC INSIGHT INTO CHANGE IN THE RUPEE AND DOLLAR RATE :

 Dollar v/s Rupee history :    

The history essentially starts from the time when the Britton Woods agreement was passed in 1944. This agreement determined the value of every currency in the world. Everyone was slowly adjusting to it during the time India gained independence.

Since Independence in 1947, the value of INR has consistently gone down. As per the modern metric system, the value of INR to USD in 1913 should be 0.09 and if we keep the 1 USD = 1 INR argument then the value went to 3.31 in 1948 and 3.67 in 1949, by 1970, INR was 7.50 to 1 USD.

1 USD to INR from 1947 to 2022 :

Today, if we convert 1 USD to INR the Indian currency’s value is lower than USD. INR’s value ranges around 64 – 71 to 1 USD. Many travelers travelling abroad exchange INR to USD and then later get it converted to local currencies to get a better rate. This practice is frequent between the travelers visiting South East Asia and Middle East.

US Dollar is considered as one of the most valuable currencies in the world. Its status is on a level where most of the international trade and exchange is valued using this currency. Dollar’s value has been always higher than most of the currencies. Some of the denominations higher than USD are Kuwaiti Dinar, Bahrain Dinar, British Pound and Euro.

1 USD to INR

1 USD to INR Rates From 1947 to 2020 :

Here, a chart will show you the changing value of 1 USD to INR. You can start analysing the change in rate of 1 USD to INR in 1947 and see how exchange rate kept increasing in the coming years. This will give you an idea of how the journey of INR has been so far and where does US Dollar stand at the end of December 2020.
    

Some of the key factors that made this happen are listed below:

  • Inflation 
  • Interest rates 
  • Impact of political instability on economy
  • Public debt
  • Current account deficit
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.


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