Rupee: On a stronger footing

 

The rupee, among the worst performing currencies (vs dollar) among emerging markets having a current account deficit in 2012-13 has fared better in the current financial year. According to RBI, the rupee’s performance was boosted by various reform measures, including liberalised FDI limits for certain sectors, announcement of a fiscal consolidation path and enhanced global investor confidence in the economy. Announcements of quantitative easing by the US Fed and the BoJ boosted capital inflows to India and aided recovery of the rupee (Click on graphic)