Dollar is becoming a superpower in itself , today one dollar is about 60.68. Rupees which is a matter of concern as far as growth of our economy is concern . Economic guru’s again making statements which are out of the reach of layman’s language . There are some points which will going to help us to understand all this game.
• more import and less export(as compared to imports)
• game of demand and supply – shortage of supply as compared to demands
in context of import and export
• a rush to cover short position in dollar by traders to avoid potential losses
pulled local currency down
To understand the present we have to know our past in 1966 one dollar was equal to 7.5 rupees then what happened in 65 years that it moves to 61 the reason is huge capital outflow .Capital is like blood which moves into our economy like blood flows in vein , if it starts getting out it will going to weak our economy which first and foremost symptom is declining power of our currency.