In the 19th century, large increases in the quantity of silver production caused a precipitous drop in silver's value. This lead to a steep decline in the rupee's value. From 1927 to 1946, the rupee was pegged to theBritish pound.10 It was then pegged to the U.S. dollar until 1975....
The rupee was never equal to the dollar. At the time of independence (in 1947), India’s currency was pegged to the pound sterling, and the exchange rate was a shilling and sixpence for a rupee — which worked out to Rs 13.33 to the pound. The dollar-pound exchange rate then was $...