India needs to rethink its currency management
The economy is a fickle beast. Exactly a year ago, the rupee, having experienced a prolonged appreciating spree, had reached as high as 63.5 to a dollar. At the time, quite a few commentators wondered aloud if the Indian currency was overvalued and whether was a moderation was necessary.
The trend of the rupee has entirely flipped this year. It has almost slipped 10 per cent since January, closing below the psychological 70-mark this month for the first time in history. Now, a wave of concern has swept the economy on the possible drawbacks from a depreciating currency.