Rupee turned out to be one of the best performers in 2015 among all Asian and BRICS currencies, excluding yen.

The currency’s depreciation of about five per cent against the dollar was less than the losses of most of its other Asian peers. The Indian rupee fared better in 2014, when it weakened by only two per cent. However, the rupee fared much better despite a pullout by foreign funds from the emerging markets, including India, as an interest rate hike was expected from the U.S. Federal Reserve.

The currency was stable when the U.S. raised the benchmark interest rate and has actually strengthened against the dollar since then. Among the BRICS nations also the Indian currency fared well. The Brazilian real depreciated 49 per cent against the dollar while the South African rand declined 34.75 per cent.

The Indian currency, which tumbled 12.4 per cent in 2013, started recovering in 2014.