Additionally, the sharp downward movement in imported commodity prices, especially crude oil prices, has also buoyed the market sentiment and contributed to the resilience of the rupee in the recent months.
The stability exhibited by the exchange rate of the rupee in the recent months, despite completion of the process of tapering of QE by the Federal Reserve in October 2014, reflects the improved confidence of global investors in the Indian economy. Overall, financial markets in India, unlike global financial markets, have exhibited greater stability and resilience.