Friday, December 1, 2023

Value Of Indian Rupee Against One Dollar In 1947 Rupee Journey Against…

Dollar-Rupee Since 1947: America is considered the most powerful country in the world. Apart from being the world’s largest economy, the US currency dollar also speaks volumes. Dollar is also considered the most powerful currency in the world. Every country does business with other countries only in dollars. Investors invest in a country in dollars. Dollar is considered as the benchmark currency. And dollar also decides the value of other currencies of the world. Similarly, rupee is also compared with the value of dollar.

Value of one dollar in 1947 is Rs 41.6

After getting independence in 1947, Indian currency started to be measured with dollar, which was earlier done in pound due to British rule. In 1947, the value of one dollar used to be Rs 4.16 against the rupee. From 1950 to 1966, the value of one dollar remained at Rs 4.76. But after this, due to the decline in the Indian economy, loans taken from abroad, Indo-China war in 1962, Indo-Pakistani war in 1965 and severe drought in 1966, the value of one dollar became equal to Rs 7.50 in 1967. Due to the crisis of supply of crude oil, in 1974 the value of one dollar came down to Rs.8.10. After this, there was a big fall in the currency due to the political crisis in the country, taking huge foreign loans, after which the rupee continued to fall against the dollar in the next decade, which came to the level of Rs 17.50 in 1990.

Big fall in rupee after 1990

In 1990, the Indian economy was in crisis. India had a huge burden of foreign debt. The government had to pay 39 per cent of the revenue it was getting as loan interest. The fiscal deficit of the government had reached 7.8 percent. India was on the verge of being declared a defaulter. The process of economic reforms started in 1991. In 1992, the value of rupee fell to Rs 25.92 against one dollar. When the UPA came to power in 2004, the value of one dollar used to be Rs 45.32. In 2014, when the Modi government came to power, a year after that, the value of one dollar was 63 rupees. But even after that, the process of weakness in the rupee continued. In 2021, the value of one dollar was equal to Rs 74.57.

Big weakness in rupee in 2022

In 2022, Russia’s attack on Ukraine, to curb rising inflation, the US Central Bank Federal Reserve started the process of raising interest rates, after which foreign investors started withdrawing their investments. After which there was a weakness in the rupee against one dollar, as well as India’s foreign exchange fund which had reached above $ 640 billion, decreased to $ 530 billion. At one time in 2022, the rupee had fallen by 10 percent against the dollar. The value of rupee dropped to the level of 83 against one dollar. At present, the value of rupee against one dollar is close to Rs 81.71.

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