RBI had weakened rupee when it was getting strong. It was Rs.39.16 per dollar. RBI had brought it down Rs.40 or more per dollar. Now oil price has gone up to $122 per barrel and dollar costs Rs.41. Now RBI should strengthen rupee by selling dollars. Dollar should be less than Rs.40. As price of oil goes up value of rupee also should go up. Otherwise imports will be costly and that will push up inflation. All efforts must be made to bring down inflation to 0%.
George Bush mentioned increased food consumption in India and China as a reason for rising food prices in USA. About 50% of Americans are overweight. They should eat less and food prices will come down in USA. For years Americans have dumped food grains in the sea to keep up the prices. They should have stored them.
Exporters were given many benefits when rupee became strong. They should be withdrawn.