- Indian rupee plunges to historic low of below 64.52 against US dollar, RBI helplessForeign institutional investors turn net sellers of Indian shares for AugustICICI Bank raises fixed deposits rates by up to 0.75 pct, mum on home loan interest ratesRBI saved banks from logging Rs 30,000 cr mark-to-market loss: ICRA
In an open economy, most of the elements need to have their own course of movement and correlative corrections. I agree with your edit “Mr Rajan’s entry strategy” (FE, August 20) where you said that RBI’s recent move to help the rupee is no boon to the economy. If the prices of most of the commodities are linked, with backward integration, to that of the input commodities, the demand will find its balance with the supply and price factors and would correct itself within a certain time-frame. This phenomenon has been reflected well in the case of gold. Such macroeconomic measures would put the daily pressure of running behind the rupee to rest and the system can be left on auto-run.
Vinay Singhal, Gurgaon
Make Railways safer
It was heartbreaking news that over 37 pilgrims including children were killed when they were run over a train in Bihar. The tragedy raises a lot of serious questions. Is it okay to boast that the Railways is one of the largest rail network in the world if it is definitely not one of the safest? Isn’t it possible to place a speed restriction at places such as the ill-fated Dhamara Ghat railway station especially in the backdrop of the possibility of huge crowds crossing the tracks? Why does the Railways not pay attention to constructing even basic facilities like foot over-bridges and service roads? Don’t we have the required technology and funds to improve the passenger services? Finally, whoever is found culpable for the Bihar train accident should be taken to task. The Centre should not brush aside this as ‘another accident’ and instead must concentrate on improving the overall safety of the train commuters as soon as possible.
P Senthil Saravana Durai, Mumbai