As FE argued on Sep 12, the unusual and unpredictable performance of the US economy in recent times and a further resolve on the part of the US administration to lend full support to its tottering financial institutions does not guarantee that the dollar would continue to gain as against the rupee. This is particularly true when the US economy is not showing any clear signs of recovery. In short, we should be clear that the exchange rate volatility is here to stay for some time. Instead of trying to influence the direction of the exchange rate movement, the RBI should adjust itself to the exchange rate in a positive manner.
?RN Lakhotia, Delhi
Hard at work
The US president has been working overtime to push the 123 agreement through (FE, Sep 11). This is good news and we hope he will succeed.
?Jacob Sahayam
