The significance of this depreciation comes through from a number of indicators. The rupee end-September was 20 per cent higher relative to the dollar when compared with the beginning of 2008, when the global crisis engulfed the world. Throughout 2011, till the beginning of August, the rupee had fluctuated in the Rs.44-45 to the dollar range. So the depreciation to close to Rs. 50 to the dollar was indeed sudden. And even in the middle of the crisis when foreign investors chose to book profits and exit from India to cover their losses or meet commitments in their home countries, the rupee touched a low of only 52 to the dollar.
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