The Indian rupee recovered sharply on Tuesday after key regulators took steps to curb speculative trading in the currency, but some gains were knocked off in minutes and the currency was back below the psychological barrier of 60.
Independent expert Moses Harding said this is not a bullish reversal, but a firefighting activity so that you don't allow the rupee to post a new historic low every day.
Other experts told NDTV that the recovery might be short lived as these measures will do little to correct the fundamental reasons that are driving the rupee lower.
A V Rajwade, consultant in currency and interest rate risk management said the rupee fall is far more a function of what is happening in the domestic economy rather than what happens to the dollar in the global markets.
Mr Rajwade was referring to comments that attributed the slide in the rupee on account of a rally in the U.S. dollar, which climbed to a three-year high on Monday.
"That becomes a very glib kind of explanation, which in a way many policymakers prefer because that avoids introspection as to where have we gone wrong...," he said.
Mr Rajwade blamed government's macro-economic policy, particularly the exchange rate policy followed over the last 4-5 years, behind the current crisis.
http://profit.ndtv.com/news/forex/artic … lar-324232
by OSBERT JOEL C 11 years ago
Why Indian rupee is falling down?Indian Rupee is falling rapidly against US Dollars. Can any one explain me why it is happening so?
by OSBERT JOEL C 11 years ago
Indian Rupee is falling rapidly against US Dollars. Can any one explain me why it is happening so?
by Pankaj Pathak 16 years ago
Why dollar is moving up and rupee is going down?There has been a recent fall in rupee since some days ago, even two days ago, it was 49.50, then 47.50, 47.10, and now 46.92. Why is this happening?
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i want to change my Adsense earning currency to dollars, so that i can know when i reach the minimum payout, because i am already at 79.*** Euros. someone should help.
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Should The Image of Slaveholding Presidents Remain On U.S. Currency?Tomas Young, the Iraqi War Veteran who died in 2014 as the result of war injuries said to America : "I have, like many other disabled veterans, come to realize that our mental and physical wounds are of no interest to...
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