T N Ninan: A stronger rupee

Poor countries need the help of cheap currencies to break into export markets

The rupee’s external value is in the news again, with Nirmala Sitharaman, the commerce and industry minister, apparently modifying her earlier stance and signaling that she is comfortable with the rupee’s rising exchange value—though, contrarily, the Reserve Bank has been busy buying dollars in recent weeks, presumably in order to try and stem the rupee’s rise. The minister’s current position is in sync with the intuitive belief of several people in the ruling camp, that a strong currency reflects economic strength. During the 2014 election campaign, it was even held up as an example of Congress mismanagement of the economy