One Day before Independence Day Nation was shocked by rupees falls 29 paise at 83.11 against U.S. dollar. In 1947 Rupees was equal to 4 dollars.

The Indian rupee on Monday opened below the 83-mark against the dollar, the lowest for the currency since October 2022 when it had dipped to a historical low of 83.26. The rupee depreciated by 20 paise to settle at an all-time low of 83.11 (provisional) against the US dollar on August 14m weighed down by a strong greenback overseas and firm crude oil prices in the international markets.

AFTER INDEPENDENCE EXCHANGE

In 1947 when India got independent, one dollar could be bought at less that four rupees.

As the country completes its 76 years of Independence, the rupee has gone down by nearly 18 times. 

Devaluations, trade imbalances, budget deficits, inflation, global fuel prices, economic crises, wars, pandemic, etc made the rupee constantly depreciate against the dollar.

In 2020, the world faced an unexpected global pandemic due to Covid-19. The pandemic unleashed challenges on global economies, and India was no exception. The Indian economy being the fastest growing economy was hit hard by the shock of cease countries bull run in the global market.

Country faced volatility in the stock market as foreign investments retreated. However, the nations resilience and proactive measures helped it recover faster than what was expected.

INDIAN ERA BEGINS 

This statement in itself is a big call. Soon, it will be reality as India is trying to turn the rupee into a global currency through different trade and treaties transacting in domestic currency. A move aimed at reducing dependence on the US dollar and increasing India’s global impact.

The RBI has allowed more than dozen banks to settle trades in rupees with 18 countries since last year. India’s recent agreement with the United Arab Emirates to trade in local currencies is a major step towards internationalising the rupee.

Bangladesh and India too have launched trade transaction in rupees.