Forex Dilemma 4

The Rupee plunged to Rs 46.00 to USD 1.00


With USD 140 Billion in reserves it is shame that the rupee is not appreciating.


We are funding the US economy, its current account deficit with interest free, tenure free, liability free, committment free money while we borrow at 6 to 10% rate of interest. India cannot afford this charity. We ourselves are starving paying high interest. Interest rates have gone up by atlest 1.5 % during the last 6 months.



The mandarins of the north block should atleast wakeup now and intervene in the forex markets using RBI to bring the Rupee value to atleat to Rs 35.00 to a USD.



Dhakshina Moorthy, K.M.

Rise and fall of BSE Sensex

People were overjoyed when the Bombay Stock exchange sensitive index of top companies listed or the SENSEX was climbing from 6000 points to 12000 points. There was dizzy activity. Every body were crediting the rise from finance minister to the stray dog that was littering on the dalal street pavement. Everybody was "factoring" the growth of India in the "valuations" giving rise to the sensex. Well!! Valuations are simply notional and are unreal. They are irrational and eccentric thought process than any application of scientific thinking. They are like a gambler's instinct. I merely see them as INFLATION. Our Finance minister states that inflation has been contained under 5%. But the index has inflated by 100%. Assets haven't doubled, profits have not multiplied - then where is the need for doubling or trebling of share values. Ridiculous. Now the finance minister has turned investment advisor to the citizens to continue investing in the stock market. He has nothing to lose. But the Citizens have already lost in crores.

Dhakshina Moorthy, K.M.