The uncomfortable rise of the rupee

India, it is fair to say, is not yet reconciled to the new-found strength of its currency. One poor wretch, pressed against the car window at a Delhi traffic light, tries to change a dollar bill she presumably cadged off a tourist. She wants Rs 50 for it. Alas, the dollar now fetches less than Rs 40(see left-hand chart). India’s currency has strengthened by about 15% against the greenback in the past year and by over 10%, on an inflation-adjusted, trade-weighted basis, since August 2006. The rupee’s rise may be less dramatic than that of the Philippine peso, Brazilian real or Turkish lira. But it is uncomfortable nonetheless.

The Financial Express
http://www.financialexpress.com/news/
The-uncomfortable-rise-of-the-rupee/252097/