Rupee crossing 80 to the dollar is nothing to be startled about

While the impact on other currencies has been sharp with most of them depreciating, the rupee has done well, being somewhere in the middle

Rupee at 80 means that another psychological barrier has been crossed and we can now look forward to 81 or 82 as markets keep guessing the future trajectory. Should we be worried? Probably yes, because any depreciation of this intensity is a matter of concern. However, we may have to bear some judgment here.

One factor that has been driving currencies is a strong dollar. The dollar is strong because the Fed has been proactive in raising interest rates with the economy overheating due to the unemployment rate dipping below 4 per cent. As a result, the Fed has been the