Rising rupee is good for India. Vested interests are opposing the rise of the rupee.
Exporters want a week rupee. Exporters have benefited over the years. The cost of dollar went up from 3.36 to 4.76 to 7.50 to 49.09 rupees. At the time importers suffered losses. No attention was paid to them. Now dollar is declining against other currencies. Rupee should be allowed to appreciate. RBI’s policy of pumping rupees to weaken rupee has led to inflation and prices have gone up by 50% within four years. Sliced bread that used to cost Rs.8/- costs Rs.12/-. A packet of half litre milk that used to cost Rs.7.50 costs 11.00. Rupee reached the level of 39.16 rupees per dollar and after that RBI has brought down the value of rupee.
Oil prices are around 100 dollars per barrel. Strong rupee will keep the price rise in check.
BPOs may suffer loss. When they gained when the rupee weakened they profited. At that time they did not ask for strengthening the rupee.
Country is bigger. If some people lose jobs others gain jobs. When exporters lose importers gain and vice versa.
Strange that Left Front wants weak rupee. They are against American domination and yet want dollar to be strong and rupee to be week.
Let RBI stop weakening the rupee.
