Rupee Vs Dollar: Rupee was once giving edge to Dollar, when there was a big fall, how was the journey so far?
New Delhi: America is a world superpower. Dollar is the biggest economy (U.S. Dollar) The world is dominated. The strength of the dollar is affecting all currencies. Dollar is the strongest currency in the world. Most of the world’s economies trade in dollars. Investors also transact, trade or invest in dollars in other countries. The dollar is considered the global currency. The dollar also determines the value of the currencies of other countries in the world. Indian Rupee (Indian Rupee) Strength is relative to the dollar. Now the Government of India will trade and transact in Indian rupees (central government) has been promoted. Interestingly, some countries have also recognized the Indian Rupee.
Although the Indian rupee is weak against the dollar today, it was not like this all the time. Once a dollar could be bought for four rupees. Of course, this story dates back to 1947. At that time the price of one dollar was 4.16 rupees.
From 1950 to 1966, one dollar could be bought for Rs 4.76. After this, a series of crises started on India. India-China war in 1962, war with Pakistan in 1965, drought in 1966. As a result, the value of the rupee fell further.
In 1967, one dollar was worth Rs 7.50. At the same time, another crisis started due to the decrease in the supply of crude oil. In 1974, one dollar was worth Rs 8.10. After this there was a political crisis in the country. The country became indebted. Due to heavy borrowings the Indian rupee was devalued.
The situation did not improve much in the next two decades. Even though the Indian economy is growing, the Indian rupee is still weak against the dollar. In 1990, the Indian rupee stood at 17.50 against the dollar.
The Indian economy had not come out of the crisis in 1990. India’s foreign debt increased. 39 percent of the income was used to pay interest on the loan. The fiscal deficit of the central government reached 7.8 per cent. India is on the verge of bankruptcy.
But then Finance Minister Manmohan Singh gave priority to economic reforms. This is how the economy came out of a major crisis. In 1992, the Indian rupee fell to Rs 25.92 per dollar.
The dollar strengthened further in 2004 during the UPI. 45.32 rupees had to be paid for one dollar. The decline accelerated after the Modi government came to power in 2014. Had to pay 63 rupees for one dollar in a year. afterwards
In 2021, the price of one dollar became Rs 74.57.
Russia-Ukraine war peaked in 2022, rising inflation, hike in interest rates by the US Central Bank Federal Reserve. The value of the Indian rupee fell to Rs.83. At present, the Indian rupee is close to 81.71 against the dollar.
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