The Indian rupee has witnessed many downfalls since 1947. Graphical representation of Exchange rate of INR per USD
Let’s see the USD-INR rates from 1947 to 2020 Since the independence Rupee has been on a weakening trend. INR on the other hand is no exception in trading on a global level. Also, one of the most recognisable currencies in the whole world is USD. The volume of business where USD is a part is huge. Most of the other international currencies are pegged against dollars to determine their value on a global level. America’s economic world supremacy has made its currency very strong. We needn’t explain how powerful the US dollar is. The absence of a standard form of currency comparison until 1944 resulted in proving the first argument practical. Hence by this logic, we can conclude that 1 Rupee was equal to 1 USD in 1947. Thus it can be inferred that Indian rupee was at parity with USD. It was a new nation with no foreign debt/credit on its national balance sheet. India achieved independence on the 15th of August 1947. Hence we can conclude that on spending 1 Rupee we could not have bought 1 USD in 1947. Now let’s see the exchange rates of INR in 1947 with respect to the Pound Sterling and US Dollar. So before USD was taken as the standard global currency, INR was fixed against Pound Sterling. This pegging pattern continued till 1966. Approach 1īritish regime in India ended in 1947 and the Indian currency then was pegged against the Pound Sterling. The statement cannot be regarded as either true or false. Let us look into this with some facts from history. So ‘was 1 rupee really equal to 1 USD in 1947’? Or was it just a fallacy? Of late there has been an outrage on social media claiming that you could get 1 USD with 1 INR in 1947 when India became independent. Was 1 Rupee Really Equal To 1 USD In 1947?
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