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Over 2015, how did the rupee do in terms of the currencies of several of India's major trading partners and peers? Of course, pressure on the rupee depends not just on global factors but also on the inflation difference between countries and the spread of interest rates that entices foreign money in - represented here by the difference between yields on government debt.
Only against the Brazilian real, in Table 1, and the Indonesian rupiah, in Table 2, has the rupee unambiguously strengthened over 2015. The interest rate differential with Brazil altered markedly in India's favour.
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In both cases, the yield spread trended downwards for much of the year.
Against the Japanese yen, as shown in Table 3, the rupee found a lower level. Japanese inflation has trended downwards over the year as compared to Indian inflation. Against the Chinese yuan, in
Table 4, the rupee headed downwards for most of the year - but volatility at the beginning and the end meant it ended up pretty much where it began. Chinese government debt yields fell more sharply than Indian debt yields over 2015.
Finally, the rupee's performance - and the two spreads - against developed-world economies in the euro zone and Britain, in Tables 5 and 6, largely mirror each other.
