RE:Rising Rupee, does it hurt us ?
by Samudraniel Dasgupta on Jul 25, 2007 11:34 PM
India's forex reserve should consist of a basket of currencies and Gold.When any currency weakens, the dealers at RBI shift the currency position. A USD depreciation, therefore, might not have harmed our reserves to a great extent. However,a rising rupee and a robust forex reserve are much better than what we had experienced in 1991 when India had to pawn gold with Bank of England and the forex reserve was less than one Billion.