A STRONG RUPEE IN THE RANGE 35 TO THE US DOLLAR SHOULD BE THE AIM.The rest will take care of itself. The RBI has printed money unnecessarily,as after the massive QEs by the US Federal reserve,ECB,BoE and BoJ the Rupee should have been very strong.t present the Rupee is very weak and should be kept at least at 30 to 40 to the US Dollar so that the under-recoveries claimed by the OMCs will be negative,petroleum fuels prices can be reduced and economy will boom.A string Rupee,by way negative under-recoveries claim by the OMCs will reduce the Fiscal Deficit,which is very important if India is not to go bust. The present UPA and RBI bunch work for sake of a strong US Dollar at the cost of the Rupee,as Crude import is not being reduced,buying of the US Treasuries while others are running away from it, IMF is the DICTATOR of India misusing M M Singh its puppet. Please googl for:- 1.Debasement of coinage Nicolaus Copernicus Keynes 2.Under-recoveries 3.The connection with Bhtainda [PPP L.N.Mittal HPCL] Bina [PPP Oman Oil Com BPCL]refineries and the hike in the prices of petroleum fuels 4.The con Game: A weak Indian Rupee 5.IMF Riot
Dr. Rajan may have initiated a long term process of structural reforms by prioritizing controlling consumer prices. Since energy inputs are a large component of this inflation, it inherently implies policy measures to ensure INR remains strong.
The supply bottlenecks which constitute greater components of the inflation can be made more visible, thereby make it possible to create political momentum to prioritize policy changes where impact can have tangible impact on growth and prices.
