With 1 dollar in the US, I could buy 62 rupees, or about half a cup of coffee.

The exchange rate alone does not tell the full story: with 62 rupees in India, I could buy 1 US dollar, or I could buy 4 cups of coffee. This is why it is important to consider what is termed ‘purchasing power’ when comparing currencies. I usually expect to pay $1.00 – $2.50 for a cup of house black- somewhere between 5 and 10 times the price in India! Nowhere in the US, not even at the dingiest rural diner, have I been able to get a cup of coffee for a quarter. As far as I can tell, 14 rupees is a reasonable estimate of the average price for 8 ounces of plain coffee in Madurai, and in US dollars this comes to 14 / 62.22 =. However, in India, 62 rupees goes a heck of a lot further than $1.00 does in the US!ĭown the street where I live, there is a snack shop that sells coffee for 14 rupees for an 8 ounce cup of coffee. The exchange rate between the US dollar and the Indian rupee, at the time of writing, is 1 for 62, meaning that, in theory, I could use one US dollar to buy 62 rupees, and vice versa.