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April 10, 2023 Currency Exchange
5 minutes, 45 seconds Read

1 USD to INR from 1947 till now, Historical Exchange Rates Explained


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The US dollar serves as the world’s most dominant currency. Regarded as the benchmark currency, the US dollar determines the value of other currencies in the universal market.

The US dollar is also one of the most commonly used currencies in international investment and trade. Trading with the dollar is much easier than any other currency. The emergence of the dollar as an indispensable medium of exchange began after World War I placed restrictions on exchanges.

Since then, the dollar has been enjoying worldwide attention. In light of this, the Indian currency, like various others, is compared against the dollar to determine its value. But the history involved in the process of scaling the INR helps in understanding the Indian economy better.

What’s been the value of 1 USD to INR since 1947 till date?

The 1 USD to INR exchange rate has always had extreme volatility since the inception and seen plethora of fluctuations over the years. We have brought you 1 USD to INR values table ranging all the way from 1947 till date so that you can see the change in INR’s value.


Breaking the monotony on this legendary question–How the Indian rupee has devalued since 1947 till date? We’ve come up with a detailed answer that clarifies the smog from this long-lived question. Honestly, it is nothing more than a myth. If you are thinking that exchanging 1 USD to INR in 1947 would have got you 1 Rupee exactly, then, sadly, that’s not true. ‘Why‘ do you ask? Here’s the answer:

  • When India got her independence in the year 1947- there were no outstanding credits on the
    the balance sheet of India that kept Indian Rupee at parity with the US Dollar.
  • Another fact that one should notice is that India was under British Raj prior to its independence thus, the Indian Rupee was pegged to Pounds then, keeping the value stable at that moment, which obviously, didn’t last long.
  • As reported: from 1927 to 1966, 1 pound valued to 13 INR. The arrangement ended in the year 1966 and the rupee started witnessing devaluation.
  • In fact, after the independence when India launched its 5 Year Plan, the Indian Rupee resultingly used to peg with the U.S. dollar at a rate of 7.5 rupees = 1 dollar until 1971.

Another question that arises is that —What was the actual worth of 1 USD to INR in 1947 exactly?

Although, after Independence, the Indian rupee continued to peg to the British pound at a rate of 1 rupee = 1 shilling and 6 pence what can be withdrawn from the stated that as 13 1/3 rupees per British pound. However, the sources state that British pound would have worth about 4 USD at that point of time – hence, concluding that the US Dollar would’ve been more than Rs 3 then.

Note: India became a republic nation in 1950. The constitution of India came into existence in 1952. At that time 1 USD was equal to 4.16 INR or 1 USD =4.16 NCU. (NCU is National Currency Unit)

Also Read:  USD To INR currency conversion: How to avoid a common travel blunder

Factors Contributing To The Indian Rupee Depreciation (1 USD to INR) – History Explained

The inception

Indian currency began to be measured against the US dollar in 1947 after India gained its independence. The value of 1 INR then could be taken as 1 USD, considering that the national balance sheet was free from any credit or debit.

However, the value of Indian currency was derived from the British pound, which then was 1 £ equal to 13 INR. And owing to the absence of a standard form of currency comparison until 1944, this valuation of INR against the British pound remained dominant.

Year-wise Dollar vs. Rupee- issues from 1947 to 1967

The value of 1 INR in 1947 was 4.76 (if a direct comparison is not made). This value continued till 1966. But the Indian economy started witnessing a downfall starting from the 1950s. This was on account of the country’s credit from the international market.

The situation was worsened by the 1962 war of India and China, followed by the 1965 war of India and Pakistan, and the drought that had hit the nation in 1966. All these turned the exchange rate of 1 Dollar to INR 7.50 by the year 1967.

Further Fall in Rupee Value- 1973 Oil Crisis

Rupee value fell to 8.10 in 1974 following the Oil Shock that took place in 1973 due to the decision of the OAPEC or Organisation of Arab Petroleum Exporting Countries to reduce production.

To combat the situation and the subsequent political crisis, India had to borrow foreign currency. This resulted in the fall of the Indian currency value. The exchange rate deteriorated throughout the 1980s and reached a value as high as 17.50 in 1990.

1 USD to INR in 1990 – the Economic Crisis

India’s economy was going through a tough time in the 1990s. Interest payment accounted for 39% of the revenue that the government collected at the time. Fiscal deficit was reduced to 7.8% of GDP, and India was on the verge of being declared a defaulter in the international market.

This crisis called for a devaluation of the Indian currency. Devaluation is a process where countries reduce the value of their currency in the international market while keeping their internal value intact. India took a similar approach to make its export market cheaper and its import market costlier.

INR value since 1992- the effect of Devaluation

The devaluation turned the exchange rate of 1 USD to 25.92 INR in the year 1992. The Indian currency value began falling since then, with a current rate of 74.57 INR. Dollar price in 2004 was 45.32 INR, and in the next ten years, it rose to 62.33. In 2016, February was the month to witness Dollar to INR highest rate ever, amounting to 68.80 INR.

USD to INR in the year 2022

A fluctuating exchange rate between INR and USD is not something new. Currency values fluctuate every day, and so does the value of the rupee in relation to the US dollar.  Numerous factors have influenced the USD-INR exchange rate over the years. Five such factors are listed below. 

  • INR-USD exchange rates are affected by the inflation rate in India and USA. 
  • The interest rate is another important factor in determining INR-USD exchange rates. 
  • Exchange rates are influenced by government debt as well. 
  • Terms of trade are the next factor to consider. It is defined by the ratio of the index of a country’s export prices to the index of its import prices. 
  • Last but not least, the INR-USD rate is also affected by the political stability in both India and United States. 

USD to INR Rates 2022:

The highest exchange rate was 83.0019 INR on 19 Oct 2022.

The average exchange rate in 2022 was 78.3789 INR.

The lowest exchange rate was 73.8102 INR on 12 Jan 2022.

Check out here month wise USD to INR Forecast for 2023 & 2024


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