Rupee: Then and now

Over last eight years, rupee has depreciated against the dollar at about three per cent per annum

The recent appreciation of the rupee, from Rs 68 per dollar at the end of January to less than Rs 65 earlier this week, even as the wholesale price index is at a 39-month high at 6.55%, reminded me of what happened less than four years ago. In late July 2013, the exchange rate was ruling below Rs 61 per dollar; it fell to over Rs 68 per dollar in early September. In other words, at that time, the rupee fell almost 12 per cent in five weeks. To be sure, the recent rise has been less in percentage terms