The "Right Value" of the Indian Rupee

Reader Manish, from India, pinged me today regarding a statement made by India's Finance Minister that the Right Value of Rupee is 59-60 to a Dollar

Asserting that the right value of rupee is 59-60 to a dollar, Finance Minister P Chidambaram today said that government will make all efforts, including extending priority sector status to export credit, to boost shipments. “We think that based on the REER (real effective exchange rate) value, that (59-60) is the right level of the rupee and it should not overshoot its mark.

Hello Mish

The Indian Govt knows the 'right' value of the rupee. How? Maybe it's because the Indian Prime Minister is one of the world's foremost economists. Perhaps it's because our brilliant Harvard educated Finance Minister threw a dart on a board.

Anyway, I thought the idea was funny and thought you would too.

Manish