Dollar rides an uncertain tide

Riding quietly on the back of dramatic reduction of key rates ,the Governor .RBI had also outlined the framework for easing limit on foreign institutional holdings of government notes now to be denominated in rupees instead of dollars and the cap will be raised in phases to 5 percent of outstanding debt by March 2018 and that the increase will help attract 1.2 trillion rupees of additional investment. That said , global economy has been unsettled by violent and unpredictable fluctuations in most major currencies. This has brought international trade and financial investment to its knees.The dollar ,that has been on the edge far too long because of the US Fed lingering,needs to find stability fast and sooner the Fed revises its rate,the earlier cross currency instability will abate and a much needed equilibrium reached. Lower domestic rates and even a liberalized the Bond market may not provide the desired upsurge to our economy ,so long as the reserve currency,the dollar rides an uncertain tide.