The Conversion of Dollars to Indian Rupees
Obtaining rupees before you leave for your trip to India requires a little preparation. Make sure that you know the current exchange rate. Exchange rates fluctuate frequently, but finding out the rate over a longer period of time can give you an idea of how much you should be getting for your dollar. You can then buy your rupees at some banks and travel agencies or at foreign currency stalls in airports.
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Dollars to Rupees Rate
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The February 2011 exchange rate, according to X Rates, is 45.2 rupees to one U.S. dollar. This means that if you were to purchase $100 worth of rupees at the current rate, you would receive 4,520 rupees. The exchange rate stayed around 45 rupees to the dollar throughout 2010, fluctuating slightly between 44 and 46 rupees.
Older Interest Rates
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In 2006, according to X Rates, the exchange rate was similar; staying between 44 and 46 rupees to the dollar. The rate fell in 2007, going from 44 to 39 rupees to the dollar. In 2008, the rate made a steep climb upwards, ending at 48 rupees to the dollar. Finally, in 2009, the rate climbed to 51 rupees to the dollar in March, before returning to 46 by the end of the year. The interest rate has varied by more than 20 percent over the five-year period from 2006 to 2011.
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Rupees
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The word "rupee" translates in English to "silver," which was originally used to make India's currency. The "fall of the rupee" occurred in the late 19th century, when large reserves of silver were discovered in Europe and the U.S. and silver currency became worth very little. India later linked their currency to the British pound, but this link was severed in 1975. India then started up a float regime, which valued the rupee based on a group of currencies from India's major trading partners. In 1982, a U.S. dollar was worth 9.3 rupees. This regime is now classed as a "dirty" (or "managed") float regime, where the government has the power to influence the value of its currency.
Where to Exchange
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Many companies, such as Thomas Cook, Travelex and Bank of America (see Resources) can exchange your dollars into rupees. Either arrange to convert the currency in a location near your home town, or convert the money at a reputable vendor at the airport. You can exchange money at your airport in the U.S. or in India when you arrive. The exchange rates offered by these companies will be slightly lower than the actual exchange rate. In addition, they might add a transaction fee. These fees constitute profit for the companies for providing you with a service.
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References
Resources
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