Rupee vs Dollar: RBI's Strategy, Current Trends, and Global Impact
Indian currency began to be measured against the US dollar in 1947 after India gained its independence. The value of 1 INR then could be taken as 1 USD, considering that the national balance sheet was free from any credit or debit.
The
USDINR decreased 0.0030 or 0.00% to 85.5510 on Wednesday May 21 from 85.5540 in
the previous trading session. Historically, the USDINR reached an All-time high
of 88.10 in February of 2025. Indian Rupee - data, forecasts, historical chart
- was last updated on May 21 of 2025.
Monthly values are averages of the daily data available. Preliminary value for the current month is provided by the source even if not all daily values are available for the entire month. The USDINR spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the INR. While the USDINR spot exchange rate is quoted and exchanged in the same day, the USDINR forward rate is quoted today but for delivery and payment on a specific future date.
The Indian rupee weakened to 86 per USD in May, depreciating 1.5% so far this month despite the broad weakness in the greenback amid dovish bets for the Reserve Bank of India. The latest data showed that consumer inflation in India fell more than expected to a near six-year low in April, strengthening bets that the RBI is due to extend its cutting cycle. The central bank had already delivered back-to-back cuts to its benchmark repo rate after holding it at the over-four-year high of 6.5% for one full year, attempting to halt the slowdown in domestic growth. The RBI also delivered a series of liquidity injections into commercial banks after the its Défense of the rupee drained domestic reserves and tightened financing conditions.
What are the reasons behind the Reserve Bank of India purchasing US dollars from the foreign exchange market?
The Reserve Bank of India (RBI) buys and sells US dollars and other currencies to manage the value of the rupee. When the rupee is appreciating too much, the RBI buys foreign currencies (like the US dollar) to prevent the rupee from becoming too strong, which could harm exports.
Why is the rupee falling?
oil price volatility due to ongoing geopolitical tensions (Russia-Ukraine war, Middle East crisis, Red Sea shipping issues and substantial FPI outflows in equity markets have also contributed to the rupee slide. Despite the slide, the rupee has remained among the world's most stable currencies.
will Bitcoin replace the Doller?
Bitcoin's rise highlights growing interest in decentralised
finance, but it remains far from replacing the US Dollar, which maintains
global supremacy due to stability, reach, and economic might. For now, Bitcoin
serves as a supplementary seest, not a replacement.
What is the highest currency in the world?
The Kuwaiti Dinar (KWD), recognized as the highest-valued currency globally, symbolizes Kuwait's economic strength. In Kuwait, the Indian ex-pat group has a strong presence, making the KWD to INR rate the most popular Kuwait Dinar exchange rate.
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