1 Dollar to Rupees in 2016: A Look Back at the Exchange Rate
Introduction
The exchange rate between the US dollar (USD) and the Indian rupee (INR) is a crucial aspect of international trade and finance. In this article, we will explore the exchange rate of 1 dollar to rupees in 2016, a year that saw significant global economic changes.
Exchange Rate in 2016
In 2016, the exchange rate of 1 USD to INR varied throughout the year. At the beginning of the year, the exchange rate was around 66.23 INR per USD. However, as the year progressed, the rupee depreciated against the dollar, and the exchange rate reached a high of 68.85 INR per USD in August 2016.
Here is a rough estimate of the exchange rate of 1 USD to INR throughout 2016:
- January 2016: 66.23 INR per USD
- March 2016: 66.85 INR per USD
- June 2016: 67.45 INR per USD
- August 2016: 68.85 INR per USD
- October 2016: 68.25 INR per USD
- December 2016: 67.95 INR per USD
Factors Affecting the Exchange Rate
Several factors contributed to the fluctuations in the exchange rate of 1 dollar to rupees in 2016. Some of the key factors include:
- Global Economic Conditions: The global economy was going through a period of slow growth, which led to a decrease in demand for emerging market currencies like the Indian rupee.
- US Federal Reserve Policies: The US Federal Reserve's decision to hike interest rates in December 2015 led to a strengthening of the US dollar, which put pressure on the Indian rupee.
- Brexit: The Brexit referendum in June 2016 led to a surge in risk aversion, causing investors to move away from emerging market currencies like the Indian rupee.
- Domestic Factors: India's domestic economic conditions, including high inflation and a large current account deficit, also contributed to the depreciation of the rupee.
Conclusion
In conclusion, the exchange rate of 1 dollar to rupees in 2016 was affected by a combination of global and domestic factors. The rupee depreciated against the dollar throughout the year, reaching a high of 68.85 INR per USD in August 2016. Understanding the factors that affect exchange rates is crucial for businesses and individuals engaging in international trade and finance.
