How rupee shrugged off the fragile tag and outperformed despite shocks

Amid the global economic volatility unleashed by the Ukraine war and the US Federal Reserve’s aggressive turn towards policy tightening, Indian financial markets have witnessed their share of turbulence.

For Indian market watchers, however, a standout feature of the current phase of volatility is the degree of resilience displayed by the rupee.

So far in 2022, the extent of overseas investment outflows from Indian equities has far outstripped that of the Global Financial Crisis of 2008. From dropping almost 20 per cent versus the dollar during that period, the rupee has held its own fairly well this year.