India's battered rupee was the best performing global currency last month amid growing confidence that a currency crisis would be contained and as fears about the Federal Reserve tapering its quantitative easing program ebbed.
The rupee rose about 9 percent against the U.S. dollar in September, also outperforming major global currencies. The rise marks a surprising comeback after the rupee sank to a record low just shy of 70 per dollar in late August, earning it the title of the world's worst performing currency this year.
Worries about a wide current-account deficit, weak economic growth and disappointment at the slow pace of economic reforms all conspired against the currency at the time. Economic growth in India, Asia's third largest economy, for instance has eased to below 5 percent from a double-digit pace in 2010.