USD INR — Live Chart, Levels & Technical Analysis
This page tracks USD-INR — how many rupees one US dollar buys. It is the single most consequential price in Indian macro: it shapes inflation through oil imports, export earnings for IT and pharma, foreign investor returns, and the rupee value of every international asset an Indian holds. The live chart above shows the current level and trend.
Why the rupee tends to drift weaker
Over long periods the rupee has depreciated against the dollar in stages — reflecting India's persistent inflation differential with the US and a structural trade deficit, punctuated by episodes of global risk-off when foreign outflows accelerate the move (visible in the daily FII/DII data). The RBI does not target a level but intervenes to smooth volatility, so the chart shows long calm stretches broken by step-moves.
What it means for your funds
- International funds: a US equity fund's return in rupees is the market return plus rupee depreciation — currency has historically added to dollar-asset returns for Indian investors, though it can subtract in rupee-strength phases.
- IT and pharma funds: exporter earnings rise with a weaker rupee — the linkage detailed on the Nifty IT page.
- Gold: the domestic gold price is the global dollar price times USD-INR, so rupee weakness lifts gold in INR even when world prices are flat — see the gold page.
- Inflation and rates: a sliding rupee raises imported-fuel costs, feeding the CPI numbers on the macro dashboard and, eventually, RBI policy.
Frequently asked questions
How does USD-INR affect my international mutual funds?
Your rupee return is the underlying asset's return adjusted for the currency move. If US stocks gain 10% and the rupee weakens 3%, your rupee return is roughly 13%; rupee strength would subtract instead.
Why does the rupee depreciate over time?
Mainly the inflation gap — prices rise faster in India than the US, so purchasing-power parity pulls the exchange rate weaker over the years — plus a trade deficit financed by capital flows that ebb and flow with global sentiment.
Is a weak rupee bad for my portfolio?
It cuts both ways: bad for oil-importing sectors and inflation, good for exporters, gold and international holdings. A diversified portfolio holds both sides — one reason diversification works. This is general information, not advice.