Rupee outperforms most EM peers as dollar surges to a 20-year high

RBI interventions ward off bets against rupee; reserves seen comfortable for 2-3 years

If there was one event that made the month of August stand out, it was a strengthening of the dollar index to levels last seen only 20 years ago, as the Federal Reserve dispelled all doubts about its intention to continue raising interest rates.

Predictably, most currencies suffered against the US unit, with the bulk of the losers belonging to the emerging markets pack. Amid the volatility, the rupee, however, has displayed significant resilience and fared much better than most of its peer currencies.

During the month gone by, the rupee depreciated a mere 0.2 per cent against the greenback