The Australian Dollar saw a steady rise in value against the INR for quite some time.
Australian Dollar to Indian Rupee exchange rate history
Australia introduced the use of the Australian pound in 1910, which got its own distinct value after the devaluation of the British pound sterling in 1931. The Australian Dollar (AUD) replaced the pound in February 1966. The history of the Indian Rupee (INR) dates back to 6th century BC, and the modern day Rupee takes its name from silver coins issued by the 16th century Mughal ruler, Sher Shah Suri.
Upon its introduction in 1966, the Australian Dollar was a fixed currency, pegged directly to the US Dollar (USD). It switched to a managed floating system in August 1971, then briefly pegged to the British pound sterling (GBP). It underwent a revaluation by the end of 1971 and pegged to the USD again. In December 1983, the AUD became a free-floating currency. The INR follows the floating exchange rate system as well.
While the Reserve Bank of India (RBI) places limitations on the movement of Indian currency outside the country, the Reserve Bank of Australia (RBA) reserves right to make interventions in foreign exchange markets in order to prevent volatile swings in the AUD’s value.
Australian Dollar historically strong against the Indian Rupee
Value of the AUD rose steadily when compared to the INR for a number of years. By the end of 1993, the AUD valued at a little over INR 21. By December 1994 it crossed the INR 24 mark, and by December 1996 it breached the INR 28 mark. The following few years saw the AUD hovering in between the INR 25 and INR 28. While the AUD climbed it value continually, its value against the Rupee did not change much due to India’s economy growing too.
In May 2003, the AUD got to INR 30.43, and an upward trend followed for some time. By January 2011, the AUD valued at INR 45.51. Around this time, slow annualised growth rates began to have an adverse effect on the Australian economy, and India's economy started reporting a slow in growth around the same time. While the Indian government took measures to work towards economic reforms, the INR continued losing ground with respect to the AUD and by the end of 2012 the AUD traded at INR 57.05.Back to top
Indian Rupee strengthens against a weaker Australian Dollar
The AUD held its own against the INR until November 2013, when it traded at INR 58.27. Though, by the next month it dropped to INR 55.44 and by January 2015 it was valued at INR 50.28.
The RBA announced keeping interest rates steady in 2015’s first quarter, but the long-term view of the AUD when compared to the INR does not look particularly promising. India, it appears, is showing moderately positive signs of long-term growth, owing to investor confidence after a new government came into power in 2014, coupled with its increasing integration with leading global economies.
The fourth quarter of 2014 witnessed India’s economy growing at 7.5%, which, in turn caused the INR to stabilise. In the coming years, India is set to grow at an average of 7% and signs of this started appearing in the AUD to INR conversion rate since early 2015. After the AUD dropped below the INR 50 mark in February 2015, it crossed the INR 50 mark only in May, to quickly fall under INR 50 in June. In August 2015, the AUD valued at INR 47.41.
If the Indian economy stays on its existing growth path, there’s a strong likelihood that the INR will continue to strengthen against the AUD.