Subsequent policy actions undertaken both by the Reserve Bank and the Government, however, augured well for Rupee stabilization as it gradually appreciated to Rs 60.10 by endMarch 2014. For Q2 2014–15 as a whole the Rupee depreciated against the US dollar albeit with some appreciating bias during the second week of August to first week of September 2014.
During periods of higher volatility, Indian firms get affected by such sharp currency movements by way of transaction, translation and economic exposures with serious implications for their bottom line and future business capabilities. 29. Large scale reliance on borrowings abroad in foreign currency by Indian corporates entails huge interest rate and exchange rate risks.