Journey of Indian rupee since independence

The Indian rupee, which was at par with the American currency at the time of independence in 1947, hit a record low of 61.80 against the dollar recently. This means the Indian currency has depreciated by almost 62 times against the greenback in the past 66 years. The currency has witnessed a large volatility in the past two years. This volatility became acute in the past three months affecting major macro-economic data, including growth, inflation, trade and investment. 

Managing volatility in the currency markets has become a big challenge for the economic policy markers in the country. The central bank as well as the government has taken a series of measures to curb the volatility in the markets.