The rupee's journey from 40 to 80 per dollar

The rupee weakened past the 40 mark and went all the way to 52 in no time, and has been depreciating steadily ever since

Those who have been tracking the rupee over the past two decades would recollect that it had appreciated from 49 to under 40 against the dollar between 2002 and 2007. There was a lot of chatter around the 40 level that the rupee was heading towards 35. It was an era when exotic derivatives were in vogue and several exporters had put on leveraged derivative structures, betting on the rupee strengthening. Thereafter, came the financial crisis of 2008 which resulted in huge losses on exotic derivative products for many exporters. 

The rupee weakened past the 40 mark and went all