"Rupee witnessed an extremely volatile year. The rupee hit a record low of 68.85 against a dollar on Aug 28, just over three months after the US Federal Reserve's May 17 announcement of possible scaling down on the stimulus programme. The rupee lost 27 per cent of its value between June and August largely due to a pull-out of money by foreign institutional investors (FIIs) after the US Federal Reserve said it will consider reducing its $85 billion monthly bond-buying programme, introduced after the 2008 global economic crisis to pump prime the economy. dollar at a rate of 7.5 rupees = 1 dollar until 1971.The Indian rupee was among the worst performing currencies this year, hitting a record low of 68.85 against the dollar due to the weak domestic economy and speculation over scaling back of stimulus, or extra printing of notes, by the US. When India launched its first 5 Year Plan, the Indian Rupee resultingly used to peg with the U.S. 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 3Rs then. Right after Independence however, the Indian rupee continued to peg to the British pound at a rate of 1 rupee = 1 shilling and 6 pence what can be withdrawn from the stated that as 13 1/3 rupees per British pound. As reported: from 1927 to 1966, 1 pound valued to 13 INR. Also, the Indian Rupee was pegged to Pounds then since India was under British Raj, keeping the value stable at that moment. If you believe that exchanging 1 USD to INR in 1947 would have got you 1 Rupee exactly, then, sadly, that’s not true reason being when India got her independence in the year 1947, there were no outstanding credits on theīalance sheet of India that kept Indian Rupee at parity with the US Dollar. To answer the legendary question–How the Indian rupee has devalued since 1947 till date?We’ve come up with a simple clarification.
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