Rupee fall, a problem from within?

.....The RBI Governor, D. Subbarao, has been frank enough to admit that any intervention that does not pack the desired punch might backfire. And the biggest limitation for the RBI has been the size of the external reserves, which has been coming down. That, in turn, reduces the quantum of ammunition in the hands of the RBI. Government spokespersons are right in saying there is no need for panic. But it is all too evident that there is no magic wand to wave the marauding dollar away........

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