All efforts by the Finance Minister and the Reserve Bank of India to correct the sharp fall in the rupee has turned futile.The rupee has hit its all-time low. One kg of poor man’s fish, sardine, costs Rs 100. ( Business Line, June 26)
How will the poor sustain themselves? The rupee slipped the psychological resistance level of 60 against a dollar, due to high month-end demands for the US currency by importers.
The partially convertible rupee slumped to 60.63 against a dollar in Mumbai. It is felt that the Indian currency would weaken further and may hit the 61-level soon. If this trend continues, the prices of all essential commodities will shoot up.
The interesting point is that the share price’s of companies which produce consumer goods are at their lowest.
K. A. Solaman
e-mail The Hindu Business line Dated 28 June 2013
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