Back home, the news seems to be the increase of the CRR by the RBI to tackle inflation. This move is aimed at making the rupee stronger, but since tuesday there seems to be no change to this effect. It looks like the favourable position of the Rupee would be around 39/- per dollar. In a move that was supposed to make the Rupee stable, one cannot see any such improvement. One of the reason might be that the oil dealers had bought dollars in large numbers to tackle the growing crude oil prices. This increased buy of dollar might have off set the effect that increased CRR should have had on the rupee.
Well Since the RBI has involved itself and has bought in monetary measures to tackle the inflation, we need to see how the policy would improve the situation. RBI in a statement on televisions had said that they would like to reduce the inflation to the tune of 5.5%