The rupee on Wednesday hits life-time low of Rs 68.75 in early trade on heavy dollar demand, Government Policies and heavy selling banks and exporters. The domestic unit hit a historic low of 68.75 against the dollar in the early trade on heavy month-end demand for dollar from banks and oil importers amid a sharp fall in the domestic equity market. Breaching the 67-level, the rupee tumbled by 82 paise to yet another life-time low of 67.06 per dollar in the opening session.
And yet, P Chidambaram tries to do precisely that. He has been repeatedly telling us that the rupee is undervalued at a time when the global winds are blowing against us. He is being proved wrong on a daily basis. UPA govt. must admit that there is something terrible wrong with their policies and so called Economic pundits. Earlier Chidambaram was again quoted in the media as saying the rupee is undervalued. The fact is currencies have a price based on demand and supply. The only relevant value for any currency is the one you get when you want to buy or sell it.