Rupee makes a strong comeback in 2023 on back of strong portfolio inflows

The rupee has moved within a band of Rs 81.5 per dollar to Rs 83 per dollar in six months

After falling 10 per cent against the greenback in 2022, the rupee staged a comeback in 2023 as it appreciated, albeit marginally, on the back of strong portfolio inflows, in addition to timely intervention by the Reserve Bank of India.

The Indian unit appreciated by 0.16 percent in six months until June 28. The rupee stood in third place in terms of appreciation against the US dollar among the 12 Asian currencies and in 12th place of the 23 emerging-market currencies.

Moreover, the Indian rupee has turned out to be one of the most stable currencies, with implied volatility at its lowest