The fair value of rupee

It is important to ensure that India is competitive. As such, Rs 72-73 to a dollar may be the right level

While the recent fall of the rupee against the dollar has raised concerns, the moot point here is — has the rupee really fallen. Leave aside the dollar, which has strengthened against every currency in the last few months, as rightly pointed out by Finance Minister Arun Jaitley, the rupee has maintained a favourable situation against almost all other currencies in the last five years.

Take the rupee versus the pound (see chart). It was 100.20 on September 10, 2013, and was 93.70 on September 10, 2018. The Chinese yuan and the Japanese yen are almost at the same level during