1 Dollar in Indian Rupees: 2016 Conversion Rate
Introduction
The exchange rate between the US dollar (USD) and the Indian rupee (INR) is an essential indicator of the economic health of both countries. In 2016, the exchange rate fluctuated due to various economic and political factors. In this article, we will explore the conversion rate of 1 USD to INR in 2016 and discuss the factors that influenced the exchange rate.
Exchange Rate in 2016
The exchange rate between USD and INR in 2016 was approximately 67-68 INR per 1 USD. The rate varied throughout the year due to changes in global economic conditions, Indian economic policies, and geopolitical events.
Highest and Lowest Exchange Rate in 2016
The highest exchange rate in 2016 was recorded in February, with 1 USD equal to 68.85 INR. The lowest exchange rate was recorded in August, with 1 USD equal to 66.25 INR.
Factors Affecting the Exchange Rate
Several factors influenced the exchange rate between USD and INR in 2016. Some of the key factors include:
US Economy
The US economy experienced a moderate growth in 2016, which led to a strengthening of the US dollar. This, in turn, put pressure on the Indian rupee, causing it to depreciate.
Indian Economy
The Indian economy was recovering from the effects of demonetization in 2016. The government's decision to ban high-denomination currency notes led to a shortage of cash and a decline in economic activity. This had a negative impact on the Indian rupee.
Global Oil Prices
The global oil prices fluctuated in 2016, affecting the Indian economy, which is heavily dependent on oil imports. A decrease in oil prices led to a decrease in India's trade deficit, which, in turn, supported the Indian rupee.
Geopolitical Events
Geopolitical events, such as the Brexit referendum and the US presidential elections, led to volatility in the global currency markets, including the USD-INR exchange rate.
Conclusion
In conclusion, the exchange rate between USD and INR in 2016 was influenced by a combination of factors, including the US economy, Indian economy, global oil prices, and geopolitical events. The exchange rate fluctuated throughout the year, with a high of 68.85 INR per 1 USD and a low of 66.25 INR per 1 USD. Understanding these factors is essential for businesses and individuals who engage in international trade and investment.
