Indian Rupee - INR

The Indian rupee was used (with different names) in the different regions of India from the XV century; however other currencies were into circulation in India from the VI century.

Indexed to the Pound sterling (on the basis 1 pound = 13,3 rupee) from 1927 to the Independence of India (1947) and those despite of the attempts if the British Empire to replace this currency by the Pound; the rupee kept this indexation until 1966, when the rupee was devalued and indexed to the US dollar on the basis 1 dollar = 7,5 rupee.

The contemporary history of the fluctuations of the Indian rupee on the Forex is defined by the control the Reserve Bank of India carries out on the volumes and on the volatility of the USD/INR cross in particular (via massive direct trading operations on behalf of the Reserve Bank), whereas the EUR/INR and INR/JPY crosses seem to float more freely.

The Indian monetary authorities’ ambition is to eventually succeed in letting the rupee totally float.

When the exchange market registered USD/INR = 44 in January 2005, a certain stability of the rupee lasted until the Summer of 2006 (USD/INR = 46,5); after this period, a light appreciation tendency of the Indian currency against the dollar was observed and lasted until January 2008 (USD/INR = 39).

Then the dollar re-appreciated against the rupee during the year 2008, and the USD/INR cross (still under the control of the Reserve Bank of India) had a value superior to USD/INR = 50 in March 2009.

A small adjustment in favor of the Indian rupee happened, so USD/INR = 46,520 in November 2009, so the same levels as in 2006.