Resident Senior Fellow, Vivek Dehejia, talks about the importance of the market freely determining the value of the Rupee, and how batting for a weaker Rupee is misguided.
"It is not that the rupee is too strong relative to the US dollar, but rather that the US dollar is weak—relative to a wide range of currencies, not just the rupee...
Unless critics would like India to abandon our inflation-targeting monetary policy regime and substitute it with a fundamentally different system, such as fixing the exchange rate to the US dollar or something else equally radical, they cannot simultaneously grumble about the interest rate and the exchange rate in an open economy."
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