Indian Rupee vs. US Dollar: History

Indians are majorly employed in US, UK, Canada, and Singapore. Many Indian students also travel to these countries for school trips. For both groups, knowledge of currency conversion from INR to USD is essential because exchange rates have a major role in the process. INR is determined in terms of the US Dollar as a benchmark. Any change in the dollar directly affects the INR/USD exchange rate.

Currently, 1 US Dollar (USD) is equivalent to 71.34 Indian Rupees. The FII flows also impacts the INR value. When the FII flows increases, Indian rupee strengthens as foreign currency inflows increases in India. Similarly, when FII sells, the INR value weakens.

Over the years, Indian rupee has recorded the lowest value against the USD at Rs 74.39 in October 2018. The Indian Rupee had breached the 70-mark for the first time in August 2018. The currency recorded the biggest monthly loss within 6 years in August 2018. Foreign funds withdrawal was $2.28 billion from the Indian equity and purchased was $1.51 billion in the debt segment in August which resulted in rupee down by 3.5% against the US Dollar. 

With the end of phase-one of the trade deal of US-China before 2019 and the expected new industrial policy by Indian, the government couldn’t breach the high exchange rate. It is therefore important to note that you should expect a small spurt in USD/INR to trade between 71.50 and 72.

Transfer Money from USA to India Best Exchange Rate

If you are an NRI sending money to India, you are amongst millions of migrants who send billions of dollars to India every year. India is the world’s largest remittance recipient with approximately $69 billion sent to the country in year 2015, according to World Bank. This is over 12 % share of the world’s total remittances. India has experienced continuous growth in remittances since 2009 and the figures are steady ever since. Even when it dropped by approx $1 billion USD in 2015, India still holds its position being number 1 remittance recipient. The major share of this remittances comes from West Asia, North America and Europe. Total amount of Remittance from USA to India is over $10 Billion.

Best way to send money from USA to India

There are so many affordable money transfer services that you can use to transfer money from the USA to India. The rest of the work is handed over to the user who has to decide which service best suits their needs. Below are some of the options that came top of the list for people who want to send money to India.

1. Money Transfer Companies

   The USD to INR exchange rate market is one of the most competitive exchange corridors where more than 50 companies are offering their services. These companies have competitive exchange rates, secure transfer services, faster and affordable remittance with excellent customer support services. You can choose from the above-listed money transfer companies based on your transfer requirements and send money easily to India.

2. ACH Transfers

   Automated Clearing House transfer is the biggest transfer network in the USA and one of the main ways to send or receive money online. The ACH transfer provides electronic or bank-to-bank transfer services in the USA so that one can send funds easily to India. These transfers take approximately 2-3 days before the recipient can access his or her money.

3. Wire Transfers

   These are the very common form of international transfers which are offered by most of the banks and money transfer companies. Under wire transfer transactions, you can send money directly into any foreign bank account within 1 business day. This transfer is best for transferring a large amount and time-sensitive remittance abroad.

4. NRI and NRE account transfers

   Many Indian banks have their branches in the US and they are offering their remittance services to the users using their NRI and NRE accounts. With them, you can transfer money to your friends and family in India with a day or two anywhere in the country in any bank. Some of the banks offering such services are HDFC’s Quick Remit, SBI, ICICI remittance services, YES Remit, Remit Money powered by Axis Bank, etc.

5. Bank Drafts in Indian Rupees

   SBI offer bank draft services to its clients abroad to make a draft in Indian rupees which can be cashed instantly when it reaches with the recipient. The draft is free if it amounts to Rs 50,000, but if the amount is lower, then it charges a flat fee of USD $10.

What are the Factors to Considers before sending money to India?

Here are 5 important Factors that you should consider before sending money to India from the US:

1. Amount You Want to Transfer: The more money to send the more value you get. In certain cases you pay less fees and get higher exchange rates as the sending amount increases.

2. Offered Exchange Rate: The higher the exchange rate, the better value you get for your money.

3. Hidden Fees & Charges: A lot of companies would claim a Zero fee but then you might end up paying an exchange rate margin.

4. Transfer Time: How quickly you want the money to be received in India. Different companies take different duration that ranging from a couple of hours to over 5 days.

5. Discounts & offers: Various companies run promotions across the year to attract more customers like you. These could be in the form of extra exchange rates or a discount on the fees. Always hunt of offers and go with the best exchange rate when remitting money.

Fastest way to send money from USA to India

What are the best money transfer services from USA to India?

To help you get the best online money transfer deal, Exchange Rate IQ team reviewed a large number of services, their exchange rates, fee structure and pay-in/payout methods. We evaluated companies of parameter like Cheapest, Fastest & number of options.