Thursday, August 29, 2013

RBI governor D.Subbarao has been clueless in the last couple of months. Rupee has depreciated against all major currencies. A lot of it can be attributed to internal issues of widening CAD, approval of Food security bill at a stage when the exchequer is short of budget, policy paralysis and our PM who refuses to break his maun vrat. External factors like increasing crude prices and global political uncertainty around U.S. stance on Syria are also noteworthy factors. Subbarao's tenure as RBI governor ends on September 5, and he would be really disappointed that he leaves on such a bad note (read Rupee).