By Shastri Ramachandaran* | IDN-InDepth NewsAnalysis
NEW DELHI (IDN) – Every few years the Indian rupee takes a dive. Every time this happens, there is the usual hand-wringing and the finance minister talking the rupee up.
Invariably, the rupee’s fall triggers the clichéd debate over growth versus inflation, talk of curbing foreign exchange outflows, sucking cash out of the market and a number of other ad-hoc measures. The rupee ‘stabilises’ at a new low. Until it goes for another spin, and the charade is repeated.
It is no different this time with the rupee at Rs 65 to a dollar and forecasts of it being headed towards Rs 70.
As it stands (or, falls) today, the rupee does little credit to India as a rising power. In fact, the rupee does not look like ever becoming a currency of power.