Rupee vs Dollor

Do you know in which year Indian rupee was equal to American dollar?

In 1947

Then from there devaluation has happened 3 times untill now

Can any one among you tell why devaluation has happened
The Indian rupee vs dollar history commenced in 1944 when the Britton Wood Agreement
was passed. The Indian Rupee was equal to the dollar in 1947. Since then, the value of the
Indian rupee has only gone down. This decline in the rupee’s value has been because of
several factors, including the 1966 economic crisis and demonetisation. Here is all the
important information about the rupee vs dollar.

Indian Rupee
To understand the topic of the rupee vs dollar, we first have to learn about the Indian Rupee.
Indian Rupee is the centralised currency of India, which is monitored and controlled by the
Reserve Bank of India.

A rupee is the collection of 100 paisas. Right now, the one rupee coin is the smallest value of
the currency used in India. The currency management is done under the Reserve Bank of
India Act, 1934 by the Reserve Bank of India. The code of Indian currency is INR. Moreover,
there was no symbol of the Indian rupee until 2010.

In 2010, “₹” was announced as the official symbol of the Indian Rupee. The “₹” sign combines
the Hindi Consonant’ ra’ and the Latin Capital letter R. However, the parallel lines on the top
of the sign show the National Tricolour Flag. Moreover, ‘Rs’ and ‘Re’ were used as the sign of
the Indian Rupee before 2010. Furthermore, the RBI prints the notes’ 10, 20, 50, 100, 200,
500 and 2000 Rs value. At the same time, the coins are available in 1, 2, 5, 10 and 20.

The Indian government announced the demonetisation of Rs 500 and Rs 1000 notes to fight
against the problem of black money. Moreover, the government ordered RBI to print new
notes of Rs 500 and Rs 2000. After some time, In 2017, the circulation of new Rs 10, 20, 50,
100 and 200 notes was also ordered.

US Dollar
The next stop of “rupee vs dollar” is the dollar. The dollar is the official currency of the United
States of America.It is also known as American Dollar or Bucks. Moreover, the dollar was first
introduced in 1792 under the Coinage Act. A dollar is equal to 100 cents. We can say that a
cent equals 1/100th part of a dollar. The monitoring of the US currency is done by the Federal
Reserve System, which is the so-called Central Bank of America.

TheThe US dollar is denoted by USD, and the

sign of the US dollar is “$”. Moreover, the US
dollar is very dominant over the currencies of
other countries. The US dollar is also among the most popular currencies in
the international trading sector. However, the US dollar gained popularity after the bans on
international exchanges during World War I. At that time, the US dollar became the
most efficient means of exchange in the trading sector. After that, the US dollar
became dominant in the world. Moreover, other countries use dollars to evaluate their

currencies, including India. US dollar is denoted by USD, and the sign of the US dollar
is “$”. Moreover, the US dollar is very dominant over the currencies of other countries.

The US dollar is also among the most popular currencies in the international trading
sector. However, the US dollar gained popularity after the bans on international
exchanges during World War I. At that time, the US dollar became the most efficient
means of exchange in the trading sector. After that, the US dollar became dominant in
the world. Moreover, other countries use dollars to evaluate their currencies, including

India.
Exchange Rate

It means to show the currency of a nation concerning the other government. Every
country shows their exchange rate concerning the US dollar. If a country devalues
their currency, then the amount of that currency in exchange for one US dollar will
increase.

Devaluation

Devaluing currency means that the currency’s value goes down with respect to the US
dollar. In other words, the nation dilutes its currency, and now its currency will
become less strong in the Foreign Exchange Market. Devaluation does not affect the
domestic value of the currency.

Foreign Exchange Market

The market where the currencies of different nations are exchanged, traded or converted into
any other country’s currency is called the Foreign Exchange Market.

India did three major currency Devaluations since 1947. The exchange rate of Rupee
vs dollar in 1947 was one Rupee for one dollar. It means that India was among some of
the stronger countries in 1947. But the current rupee vs dollar exchange rate is 0.013
USD for 1 INR, i.e., 75.92 INR for one US dollar in simple conversion. Ultimately, the
Indian rupee has become weaker.

But the point is, why did India devalue its currency? India or any other country
devalues its currency to manage their Balance Of Payment which has been
worsening. Moreover, India devalued its currency to make imports costlier and
exports cheaper. This encourages exporters to export more goods to Foreign Markets,
which rectifies the ratio of export to imports. On the other hand, costlier imports
help generate more revenue. Ultimately, both the imports and exports help correct a
bad Balance Of Payment (BOP).

First Devaluation
The first devaluation of the Indian rupee happened between 1950 and 1960. The devaluation
was a lack of monetary funds in the government treasury. Moreover, the Indian Government
had to do a lot of development work in India because India had just gained its independence
from British rule. At that time, the value of Rupee vs dollar was $1 = Rs 4.75.

Second Devaluation

Then after some time, In 1962 and 1965, India had to get into the war against China
and Pakistan. Moreover, the state of the monetary treasure was already not good. In
addition, India also got stuck in a huge problem of drought, which affected the crop
production capacity of the country.

Third Devaluation

In 1973, India had to face an oil shortage as the Arab Petroleum had decided to cut the
crude oil production. After that, a major political instability also happened in India. PM
Indira Gandhi was assaulted by her bodyguard for some internal decisions of the
Indian Government. However, this created a very dramatic scene and nationwide
killings of the people of a particular religion. These external and internal factors
reduced the power of the Rupee vs dollar to $1 = ₹17.50.
Conclusion

The Indian rupee is the currency of India that the Reserve Bank of India monitors. In
1947, the Indian rupee was equal to the dollar. However, since then, its devaluation has
happened three times. Hence, as of 2022, the current rupee vs dollar value is 1 rupee =
0.013 dollars.

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