Why the rupee can keep falling

People ask me, will the exchange rate go to Rs 70 to the dollar? I reply, why not Rs 80? Indian analysts are in denial. They don’t dare face up to the full consequences of the global financial hurricane originating in the US. This will keep blowing for 12-18 months. To revive the US economy, the Federal Reserve has been pumping out $85 billion of cash per month (called quantitative easing). With the US economy recovering, the Fed plans to reduce this cash bonanza in stages to zero.

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