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Position Paper: Rupee Crisis?

By late April 2012 the rupee crashed to a considerably low level of Rs. 133 to the US dollar, far beyond the expectations of the authorities, instantaneously creating extensive debates and much unrest amongst economists, politicians, the business community and the general public. However, therein lies the question – can one actually call this a ‘rupee crisis? To come to a substantiated comprehension of the issue it is essential to analyze, both the root causes of the ‘rupee crisis’ and its resulting consequences.

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