A scramble for dollars saw the rupee slump to an all-time low of 53.35 to the dollar today. The interest rate was raised 13 times in the last 20 months, steepest hike in the whole world, to control inflation which has been above 9% throughout the year. Given the way policy makers are behaving and the large current account and fiscal deficits, India seems to be heading for the worst financial crisis in decades. Sharp devaluation, as sharp as that of 1991, seems to become a reality soon.
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