Caution over rupee

RBI must keep an eye on its reserves as dollar strengthens

In the course of the day’s trading, the rupee hit a new low of 80.06 against the dollar on Tuesday. It soon recovered slightly, staying steady and closed the day at 79.95 to the dollar. The currency has lost about 7 per cent of its value since the beginning of the year. Some Asian and emerging market currencies have done worse, a few more have done better. One index of the dollar vs Asian currencies indicates that the general slide for the latter against the former this year is of about 6.5 per cent, indicating that the rupee is doing