1 USD to INR in 2013: A Look Back at the Exchange Rate
In 2013, the Indian rupee (INR) witnessed significant fluctuations against the US dollar (USD). The exchange rate between the two currencies was affected by various economic and political factors. In this article, we will take a look back at the exchange rate of 1 USD to INR in 2013 and analyze the key events that influenced the currency market.
Exchange Rate Trend in 2013
At the beginning of 2013, the exchange rate of 1 USD to INR was around 55.20 INR. Throughout the year, the rupee experienced a rollercoaster ride, with the exchange rate touching a high of 68.85 INR in August and a low of 51.44 INR in February.
Here is a breakdown of the exchange rate of 1 USD to INR in 2013:
- January: 55.20 INR
- February: 51.44 INR
- March: 54.21 INR
- April: 54.45 INR
- May: 55.53 INR
- June: 57.15 INR
- July: 59.48 INR
- August: 68.85 INR
- September: 62.45 INR
- October: 61.85 INR
- November: 62.15 INR
- December: 61.95 INR
Factors Affecting the Exchange Rate
Several factors contributed to the fluctuations in the exchange rate of 1 USD to INR in 2013. Some of the key events that influenced the currency market include:
US Federal Reserve's Quantitative Easing
In 2013, the US Federal Reserve continued its quantitative easing program, which involved injecting a large amount of liquidity into the economy. This led to an increase in the value of the US dollar, causing the Indian rupee to depreciate.
Current Account Deficit
India's current account deficit (CAD) widened significantly in 2013, leading to a decrease in the value of the rupee. The CAD is the difference between the value of goods and services imported and exported by a country.
Fiscal Deficit
India's fiscal deficit, which is the difference between the government's revenue and expenditure, was high in 2013. This led to concerns about the country's economic stability, causing investors to sell their rupee holdings and invest in safer assets such as the US dollar.
Inflation
India's inflation rate remained high in 2013, which eroded the purchasing power of the rupee. High inflation led to a decrease in the value of the rupee against the US dollar.
Geopolitical Tensions
Geopolitical tensions between the US and Syria, as well as the crisis in Egypt, led to an increase in oil prices and a decrease in investor confidence in emerging markets such as India.
Conclusion
In conclusion, the exchange rate of 1 USD to INR in 2013 was affected by a combination of economic and political factors. The rupee's depreciation was primarily driven by the US Federal Reserve's quantitative easing program, India's high current account and fiscal deficits, high inflation, and geopolitical tensions. Understanding the factors that influenced the exchange rate in 2013 can provide valuable insights for investors and policymakers seeking to navigate the complex world of currency markets.
