1 USD to INR in 1947: History of the Indian Rupee

The exchange rate of 1 USD to INR in 1947 was ₹3.30. In the subsequent years, the Indian rupee has been losing value against the US dollar. As of August 2, 2023, the exchange rate between USD and INR was ₹82.73.

Between 1949 and 1966, the exchange rate of USD to INR was ₹4.76. This was a fixed exchange rate, meaning that it did not directly reflect the supply and demand for the US dollar and the Indian rupee. Still, these market forces would periodically influence decisions to adjust the exchange rate between USD and INR.

Between 1966 and 1975, the 1 USD to Indian rupee exchange rate was ₹7.50, and it was then changed again on four occasions in 1975 (₹8.39), 1980 (₹6.61), 1985 (₹12.38) and 1990 (₹17.01).

India kept its fixed exchange rate policy until 1993, when it officially adopted a “market-determined exchange rate” policy for the rupee.

The Indian rupee reached its lowest-ever value against the US dollar in February 2023, when the USD/INR exchange rate hit ₹82.93. 

The history of USD to INR exchange rate: 1 USD to INR in 1947 to 2023

Let’s visualize the change in the USD to INR exchange rate since 1947 with a chart. 

Please note that the following chart does not account for intra-year exchange rate fluctuations, as it uses only one data point for each year. The chart is designed to display fluctuations over a longer time frame.

In the table below, you can find a more detailed breakdown of the INR to USD exchange rate since 1947.

As we can see, there has historically been a clear trend of the Indian rupee losing value against the US dollar. It is worth noting that USD itself also lost a considerable amount of purchasing power over the same period due to inflation. According to data from Trading Economics, USD underwent a cumulative rate of inflation of 2,981% between 1947 and 2023. In other words, an item with a price tag of $1 in 1947 would cost more than $30 today.

Important milestones in the history of the Indian rupee

Let’s briefly highlight important milestones in the history of the Indian rupee to get a better understanding of what has happened to the currency since India gained independence in 1947.

1950s: Decimalization

In the 1950s, a decimal system for Indian rupee coinage was adopted. Before the decimal system, the rupee could be divided into 16 anna, 96 paisa or 64 pice. Since the decimalization, 1 rupee is divided into 100 paisa.

1966: Economic crisis 

A number of factors led to an economic crisis in India in 1996. This includes a reduction in foreign aid to India, the Indo-Pakistan war, and a severe drought in 1965/1966. These factors led to a devaluation of the rupee.

1991: Economic crisis 

During this period, India was struggling with high inflation and budget deficits. India’s balance of payments problem prompted the government to devalue the rupee. In 1993, the fixed exchange rate policy was finally abandoned. 

2000s: Revaluation 

Foreign investments into India helped stabilize the value of the rupee in this period, and the currency began gaining strength. However, the financial crisis in 2008 led many foreign investors to divest from the Indian market, which contributed to reversing the rupee’s positive trend. 

2016: Demonetization 

In 2016, the Indian government demonetized ₹500 and ₹1,000 banknotes from the Mahatma Gandhi Series. This was accompanied by the issuance of new ₹500 and ₹2,000 banknotes.

2020s: Economic expansion and digital rupee

India has been at the forefront of central bank digital currency (CBDC) development thanks to the effort surrounding the digital rupee (also called the eRupee). The programmability of the eRupee and India’s economic expansion could help strengthen the country’s status as a major power on the global stage.

The bottom line: INR to USD has depreciated significantly since 1947

If we consider that the exchange rate of the dollar vs rupee in 1947 was 3.30, it becomes clear that India’s national currency has depreciated significantly in the decades since India gained independence. In fact, the rupee hit its all-time low against the dollar quite recently, in February of 2023.

Of course, this trend could reverse in the future, given the rapid pace of India’s development – that’s especially true if the global economy manages to shake the grip of high interest rates designed to fight inflation and avoid a recession in 2023.