No fear of Fed taper

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A combination of factors, both domestic and global, led to the rupee hitting nadir on August 28, when it touched 68.83/$ - a 27 per cent depreciation during the financial year. Since then, it was a different story altogether, with Raghuram Rajan taking charge of the Reserve Bank of India on September 4, and announcing a series of measures to attract inflows. Now, as the macro fundamentals are in a much better shape, the country is better prepared to face the US Fed's gradual rollback of $10 bn a month, starting January 2014, of its bond-buying programme. A look at how things have changed in the last few months that has provided strength to the rupee: