Rupee suffers second biggest fall in history!

thnks for sharing sujatha

Sujatha nice posting. I dont know where it will end. If it dose not bleak future ahead for us.

yaa u r right because first fall in rupee was in 2008 and 2009.......

No govt can control a global centralized monetary system. Alternative monetary exchange systems have to evolve.

 The weakening fundamentals of capital formation will rein other currencies. The market is linked to Dollar which is supporting recession inflicted currencies of Europe which are reeling under economic slow down.The rupee will weaken because of lull in demand in the international market.Any expert will be helpless to control the slide. 

Why the FM, hasnt the whole govt. been sleeping on a whole lot of issues. Add to this a mindless interest rate hike by RBI and mother inflationary pressures contribute to making life tough in india. But caught in this situation is the middle income as always. At least the indian govt. can learn from their chinese counterparts but "no sir ! we know it all and let our citizens suffer for some time, but at least they have the freedom " must be the response from the govt. circles.

Let us think to use dollar as our currency.

Thanks Sujatha, for the invite.  

The FM, the entire financial sector of India (both private and government - including the RBI), all the exporters (including software and ITES/BPO/KPO organizations) actually WANTED this.   

This was brought about by DESIGN. This is our horrible situation:  We think we need the Dollar to be stronger than the Rupee because most of our exports are to the US and Dollar-allied markets. Unfortunately for us, the Dollar is falling against the other currencies - notably the Euro and Middle East petro-money.  

Why on earth are we depending so much on exports? Because we want a lot of money, that's why, right? But... What exactly does this lot of money mean when it gets us even less than before?   

Price of gold in 1970 --> Rs.200/- per tola (10 gms) Price of gold in 2011 --> Rs.30,000/- per tola (10gms) Value of our money is 1/150. That means, the value of the Rupee in 1970 was ONE HUNDRED & FIFTY TIMES more.  

I think we are better off with the barter system OR we can start using gold biscuits as our currency for high-value transactions and gold sovereigns for proportionally lower-value transactions.  

We should start doing this among relatives and friends. This way, we can avoid using paper money which keeps decreasing in value all the time.

We have to adopt lean 'austerity' measures and cut down heavily on our foreign indebtedness. More 'exports' and less 'imports' may increase our foreign reserves and may strengthen the rupee.

Indian government is doing too little and too late to strenghten Re, unlike Chinese finance ministry which has not allowed Yuan to weaken against any major currency.

thanks much better