The rupee has lost 75% of its value in the past 75 years, going from Rs 4 against the then-benchmark Pound Sterling to roughly Rs 79-80 versus the US dollar.
On August 15, 1947, India got freedom from British rule. The Indian rupee at that time was pegged to the British pound & had a value equal to that of the US dollar. The balance sheet of India contained no foreign debt.
1947
After independence, India choose to adopt a fixed rate currency regime. The rupee was pegged at 4.79 against a dollar between 1948 and 1966.
1948-1966
Due to a massive budget deficit brought on by two wars, one with China in 1962 & the other with Pakistan in 1965, the Indian government was forced to weaken the rupee to 7.57 to the dollar.
1965
The rupee's link with the British currency was broken in 1971 & it was linked directly to the US dollar.
1971
In 1991 amidst high inflation, low growth, the currency was devalued to 17.90 against a dollar.
1991
The year 1993 is very important in Indian currency history. It was in this year when the currency was let free to flow with the market sentiments. In 1993, one was required to pay Rs.31.37 to get a dollar.
1993
The rupee traded in the range of 40-50 between 2000-2010.
2000-2010
In 2016, February was the month to witness Dollar to INR highest rate ever, amounting to 1 dollar equalling to 68.80 INR.
2016
In July 2022, rupee breached the 80 mark to the US dollar for the first time. Currently $1 = Rs 79.37.