The rupee hit its lifetime low of 74.39 a dollar on September 10, but started strengthening thereafter. The rupee ended November at 69.58 a dollar. The rise in deposits may indicate that NRIs expect the rupee to appreciate here on, given a stronger rupee improves the return on investment, when converted into dollar.
However, if the rupee depreciates against the dollar from the level it was invested at, depositors lose out on exchange rate.
Consequently, foreign currency non-resident deposits, in which dollars are deposited, fell by about $1.73 billion, according to the bulletin.