On August 28 last year, the rupee hit its historic low of 68.85 a dollar, amid uncertainties over the US Federal Reserve’s tapering of its monthly bond-purchase programme.
The rupee’s woes were compounded by widening of fiscal and current account deficits - both were at record highs.
On September 4, at a time when the rupee was the worst performer among Asian currencies, Raghuram Rajan took charge as RBI’s governor.
A slew of measures that he announced for attracting inflows helped improve sentiment. With these steps, the rupee’s fortunes also turned.
Business Standard looks at the situation a year ago and compares it with now.
Steps taken by RBI
Marginal Standing Facility rate raised over 300 bps above repo rate to 10.5 %
Dollar swap window made available to banks to meet public-sector oil marketing companies’ dollar demand
The amount of forex individuals could take out of the country was capped at to $ 75,000
Twin swap windows helped banks mop up $34 billion