Letters: Not in India's interest

Strengthening of the rupee is not caused by export boom

No one can dispute that the competitiveness of any country depends to a large extent on the movement of its currency. If we go by the traditional six-country Real Effective Exchange Rate, the rupee was overvalued by 30 per cent in March, according to data published by the Reserve Bank of India on April 10.

We have the example of China, which has emerged as a world power by keeping its currency artificially weak despite strong fundamentals. 

During the financial year 2016-17, against the US dollar, the rupee appreciated by 2.12 per cent (from Rs 66.25 to Rs 64.84) whereas the Chinese