Do u know why Indian currency value is reducing?

@harsha27 (205)
India
December 18, 2008 5:27am CST
Friends can u please quote the reasons and suggestions to improve Indian rupee value.
2 responses
• India
18 Dec 08
First our population my decrease in order to improve our economy. If our papulation reduces by 30% then our country will become like america or like any other developed country. Free quality education for the poor my be improved.
@harsha27 (205)
• India
18 Dec 08
population is the only factor that effect's Indian currency .Is there any other reason do u think isn't it?
• India
25 Dec 08
In order to make rupee stronger, RBI has to intervene. It can play a greater role to strengthen rupee. The reason for weak rupee is the increase in liquidity in the market. As you know that in order to control inflation RBI took steps that increased liquidity in the market by lowering interest rates. What RBI can do now is to sell government bonds. That will reduce the liquidity. In addition RBI can sell dollars from its foreign reserves. That will also push the rupee upwards. if you want information related to economic issues, feel free to post.