Business/Economy
Rupee breaches 55 barrier against dollar - Times of India
Continuing its downward drift, the rupee crossed a new all-time closing low of 55 against the dollar, settling at 55.04. The trend persisted in the absence of any major flows despite intervention by the Reserve Bank of India. Dealers said that given the current inclination, the currency could slide to 56 to 57 levels. However, any depreciation beyond this level could trigger panic and lead to a currency crisis, which would force the central bank to come out with concerted efforts to support the rupee. 

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The UPA 2 government was conceived in corruption – and never really recovered from that taint. Right from the day the election results came in, the back-channel negotiations began for the reappointment of A Raja as Telecom Minister to advance the interests of certain telecom majors (in return for illegal gratification). It was an enterprise which set the stage for India’s biggest corruption scandal and virtually set the political tone for the rest of the four years. As subsequent exposes have established, Manmohan Singh and other key Ministers knew full well that mischief was afoot, but pointedly looked the other way. That was the beginning of the slide, and the UPA government in general – and Manmohan Singh in particular – was mortally wounded from that episode. But rather than press ahead with remedial action, the government slid further into the cesspool of corruption.
Venky Vembu
 

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