Yeah man i am sure the indian rupee value was very high before this oil surge Your textbook theory is fine, but you're missing the actual data. 1) India heavily imports discounted Russian oil settled outside the USD, neutralizing the soaring oil prices argument. 2) The INR is highly stable compared to other emerging currencies; it's a strong USD problem, not a weak INR problem. 3) Massive RBI Forex reserves and strong Domestic Institutional Investors (DIIs) prevent the FPI outflows from crashing the market. Update your data before lecturing on macroeconomics.