RUPEE WEAKENING -GOVERNMENT CLUELESS.
Even Today,the rupee has breached Rs.68/- against the dollar.The government is
busy in doing some tinkering here and there to show to the people of India that
they are serious in strengthening the rupee.The irony is that our country has the
best of the brains in Economics (our PM ),the experienced Finance Minister and
the Deputy Chairman of Planning commission,Dr.Montek Singh Ahluwalia,still
they are not able to stop the weakening of the rupee.Rupee is at weakest level ever
and there seems to be no signals of rupee strengthening in the near future.
The rupee has lost 20% of its value this year and rated as one of the worst
performing currencies. Even some Latin American Currencies have lost against the
dollar.There is an inherent fear of the widening current account deficit.A jump in
oil prices in the wake of the fears about military action against Syria by US and and
its allies have complicated the situation.India imports 80% of its oil requirements
and any increase in oil prices will fuel inflation and widen the current account deficit.
The uncontrolled gold imports earlier was also a factor in increasing the current
account deficit.However,now the government has increased duty on import of gold which should have been done earlier.