India has the fifth largest economy in the world by nominal GDP and one of the fastest growth rates among major economies. The Indian rupee is managed by the Reserve Bank of India, which uses a managed float system rather than letting the currency trade completely freely.
In 1947, one US dollar was worth about 3.3 Indian rupees. Over the decades, the rupee has gradually depreciated against the dollar due to inflation differentials, trade deficits, and capital flows. The rate crossed 50 in the early 2000s and has been above 80 since 2022.
For businesses engaged in India-US trade, managing this exchange rate exposure is a critical part of financial planning. Many companies use forward contracts and hedging strategies to lock in rates for future transactions.