The rupee value decreased to 8.10 in 1974 due to the 1973 Oil Shock, caused by the Organization of Arab Petroleum Exporting Countries’ decision to reduce output. By 1967, all of this had pushed the exchange rate to INR 7.50.įurther depreciation of the rupee owing to the 1973 oil crisis The situation was made worse by the 1962 conflict between India and China, followed by the 1965 war between India and Pakistan, and the drought that ravaged the country in 1966. It was because of the country’s international creditworthiness. However, beginning in the 1950s, the Indian economy began to deteriorate. In 1947, 1 INR was worth 4.76 rupees (if a direct comparison is not made).

Because there was no conventional form of currency comparison until 1944, the INR’s value against the British Pound remained dominant.ĭollar vs Rupee issues by year from 1947 to 1967 The value of Indian money, on the other hand, was taken from the British Pound, which was worth 13 INR at the time. Given that the national balance sheet was devoid of any credit or debit, it could equate the value of 1 INR to 1 USD. USD to INR Exchange Rate was large before India’s Independence in 1947 the Indian currency was first assessed against the US dollar. (The NCU stands for National Currency Unit.)Īlso, see: How to avoid a common travel gaffe when converting US dollars to Indian rupees.įactors Affecting “The Indian Rupee Depreciation” (1 USD to INR) – A Brief History 1 USD was equal to 4.16 INR or 4.16 NCU at the time. In 1952, India’s constitution came into being. However, according to reports, the British Pound would have been worth around 4 USD at the time, implying that the US dollar would have been worth more than Rs 3. USD-INR: Indian Rupee Drops to 9-Month Low Against US Dollar.Īlthough, after Independence, the Indian rupee was pegged to the British Pound at a rate of 1 rupee = 1 shilling and 6 pence, which translates to 13 1/3 rupees per British Pound. Until 1971, when India launched its 5 Year Plan following Independence, the Indian Rupee was pegged to the US dollar at 7.5 rupees per dollar.Īnother question emerges: what was the exact value of one dollar in Indian rupees in 1947?.The agreement ended in 1966, and the rupee began to depreciate. According to reports, 1 pound was for 13 INR from 1927 to 1966.As a result, the Indian Rupee was tied to the British Pound, keeping the value consistent at the time, which didn’t last long. Another aspect to remember is that India was ruled by the British before it gained Independence.There were no outstanding credits on India’s balance sheet when it gained Independence in 1947, keeping the Indian Rupee parity with the US Dollar.If you believe that exchanging one dollar for one rupee in 1947 would have resulted in precisely one rupee, you are mistaken. We’ve come up with a precise response that clears the haze surrounding this old subject. You are breaking the monotony on the age-old subject of how the Indian rupee has declined since 1947. The history of the INR, on the other hand, aids in a better knowledge of the Indian economy. In light of this, the INR currency, like many others, is valued by comparing it to the dollar. Since then, the dollar has gotten a lot of attention worldwide. The USD is far easier to trade than any other currency. The US dollar is also one of the most widely utilised international investment and trade currencies. The value of other currencies in the worldwide market is determined by the value of the US dollar, which is considered the benchmark currency. USD to INR Exchange Rate History? The US dollar is the most widely used money in the world.

1 usd to rupee