Rupee drops 3.5% against dollar in FY22; fares better than global peers

The rupee ended the financial year with a decline of 3.5% against the dollar as compared to 3.4% gain in the previous year. The domestic unit fared well despite global headwinds like interest rate hike by the US Federal Reserve and rising crude oil prices after the Russian invasion of Ukraine.

The rupee depreciated 6.27% in the financial year 2013-14 when investors pulled out of emerging markets after the US Fed under Ben Barnanke spoke of possible financial tightening and reducing large-scale asset purchases.

One reason for the rupee to have performed better is that the country’s macroeconomic parameters are much better