Article;
Investor Sentiment Will Turn In Favour Of Rupee -Chidambaram
Comment;
The government and the
RBI should aim at increasing demand for Indian-Rupee in the international
market which has long-term implications. A stronger rupee will attract more
capital inflows. It is an irony that we need to collect US$ for CAD but the
long-run foreign investment depend on a strong rupee. We need more dollars
which means the demand for dollar already exists therefore it is a strong
currency but we need to create demand for Indian Rupee so that we are also in
the race of acquiring the status of a reserve-currency. We are the third
largest country after US and China in term of GDP but we have no ambitions like
that… There should be a balance between the demand for dollars and demand for
Indian-Rupee to keep their values/exchange rate right. We see that investors
find refuge in a strong economy and currency like the US when the economy
recovers. It is a strong economy that has maintained its investment status even
after the banking crisis. I think in the long run we are competing with the US…
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