Sliding rupee and CAD wrecking Indian economy

.....The pressure on rupee continued in 2012-13 because of the ongoing euro-zone crisis. The import cover for forex reserves as a result has declined from 14.4 months in 2007-08 to less than seven months now. It has further hit the rupee. Some estimates say if the situation does not improve it could go to Rs 60 and beyond. The RBI is scared of intervention. It has a cost. It leads to further dwindling of reserves. The liquidity of rupee also increases. It may stoke inflation, which already remains high. It impacts every aspect of the economy.......

Read - Nagaland Post