In case Dollar continues to appreciate it is but natural that INR will depreciate in line with other currencies and in due course it may hit 70. what is more interesting is that fear of Rupee weakness is coupled with clamour of NRI bonds.
Last time we did NRI bonds, India import cover was down to less than 7 months of import but today our macros are nowhere in that position. But NRI bond is also a drain on exchequer . When India did last NRI bond issue in 2013 Indians basically subsidised NRI’s to the tune of approx USD 3 billion for shoring up our Rupee and not to forget the huge commision earned by intermediaries.