In last one year India Rupee depreciated 10% against US Dollar, from 60.38 on Sept 9th 2014 to 66.68 on Sept 8th 2015. This might sound like a big fall, particularly If you consider the long-term average of around 5%(Ref Table 1), Rupee depreciated more than double the average in last one year.
A mere statement by US Fed about ending its quantitative easing programme, sent the rupee to all time low of 68.8 in Aug 2013. This event also had a similar impact across the world currencies. Continue reading