Should Govt. IN: Rupee Depreciation???

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SHOULD GOVT. INTERVENE IN RUPEE DEPRECIATION???

Santanu Kumar Dash

Till now Govt. intervention is there


Less effect or no effect in Rs. appreciation

Should Govt. intervene further???

MAJOR REASONS FOR RUPEE DEPRECIATION


High Inflation Interest rates: RBI increased some interest rates like repo rate, reverse repo rate, etc. to control inflation but growth decreases. So foreign fund outflow. Current account deficit

IMPACT OF INR VS USD


Foreign funds outflow Govt. deficit is high Political uncertainty and corruption

RBI sold dollar to increase the value of rupee but it is very difficult to control inflation and fix the problem in economy.
http://www.thinkplaninvest.com/2011/09/what-is-the-reason-behind-rupee-valuedepreciation/

Till now RBIs intervention has not gone on its way because it is mainly affected by euro zone crisis, etc.

Till now Govt. intervention is there


Less effect or no effect in Rs. appreciation

Should Govt. intervene further???

Yes

FURTHER STEPS

2 steps(see the link- fresh news)

http://www.moneycontrol.com/news/cnbc-tv18-comments/action-to-stem-rupeefall-likelywed-govt-sources_622354.html

http://www.moneycontrol.com/news/business /rbi-eases-overseas-borrowing-rules-forcorporates_623072.html http://www.thehansindia.info/News/Article.as p?category=1&subCategory=1&ContentId=2 0546 http://profit.ndtv.com/news/show/rupee-hitslife-time-low-pranab-says-rbi-interventionwill-not-help-188949

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