As compared to major currencies as well as some of the other emerging market peers, the Indian Rupee has exhibited greater stability during the recent months.
Positive factors including continued FII inflows to the domestic equity and debt markets (around $ 39.3 billion in 2014–15 so far), sustained FDI flows, political stability, fiscal consolidation (lower fiscal deficit target of 4.1 per cent of GDP in 2014–15 vis-à-vis realized fiscal deficit of 4.5 per cent of GDP in the previous year), continuation of reform measures by the new government at the Centre, significant reduction in current account deficit during the first half of the current financial year (1.9 per cent of GDP), improvement in macro-economic parameters, such as, CPI inflation (5.1 per cent in January 2015) and GDP growth (7.4 per cent during AprilDecember 2014 as per new methodology) have contributed towards the stability of the rupee.