You are here: Home » Opinion » Columns
Business Standard

The rupee's 'new lows': Why it's not necessarily a cause for concern

The framers of a 'strong currency' policy ignore that almost every country with a successful long-term record of development has pursued a 'weak currency' policy, writes T N Ninan

Indian rupee | Weekend Ruminations | Indian Economy

T N Ninan 

T N Ninan

When P Chidambaram was finance minister, among the things that used to provoke the famously thin-skinned politician were newspaper headlines that said “Rupee falls to a new low”. Or to a “record low”. While he saw a falling currency as a reflection on his performance, he had a point about the headlines: If a generally weak currency like the rupee is falling, every fall (even if by a few paise) could be to a “record low”. Both the headlines and the minister’s response betrayed a mental bias against a weak currency. Indeed, the currency’s fall gets more attention than its rise.



What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.


Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, July 01 2022. 19:35 IST