With rupee breaching 56 level against the dollar, the Chief Economic Advisor, Dr Kaushik Basu, today said the exchange rate problem is “bit of a bubble” and has nothing to do with domestic policies.
“...the current exchange rate problem that you are seeing, the very sharp depreciation that is taking place, I don't think it really has anything to do with our policy or policy mistakes being made over here, which is causing that,” Dr Basu told CNBC TV18.
He pointed out that currencies of several emerging economies – like South African rand, Brazilian real and Mexican peso – all are moving very much like the rupee.
He also said that the rupee is not the worst performing currency.