As concerns over the Federal Reserve scaling back its monetary stimulus rise once again, is the Indian rupee at risk of repeating the violent selloff that took place in May-August?
The rupee has come under renewed pressure over the past two weeks, falling over 3 percent against the U.S. dollar to trade at a two-month low of 63.50 on Tuesday.
"The biggest factor seems to be the back-up in U.S. Treasury yields, the rupee is the most sensitive currency to U.S. yields in the emerging markets space," said Mitul Kotecha, head of global foreign-exchange strategy at Credit Agricole.
(Read more: Why Asian investors should not sweat an early taper)
"I don't think we're going to see a rush to the exit, but the pressure is going to continue going into next year," added Kotecha, who sees the currency depreciating to 64 by year-end, and 68 by the end of first quarter of 2014.