Is the falling rupee a cause for alarm?

Over the last few days, the rupee exchange rate has fallen below ₹90 a dollar and has largely stayed at that level. Now, with Parliament running, a lot of the discourse on this has been political. However, from a policy level, it is critical to understand the economics behind the fall. Why is the rupee falling? Is it falling worse than other currencies? Does the fall hurt or help the Indian economy? And finally, is this a cause for alarm? Madan Sabnavis and Ranen Banerjee answer these in a conversation moderated by T.C.A. Sharad Raghavan .

Edited excerpts:

Why is the rupee falling?

Madan Sabnavis: It is falling for a variety of reasons. The first is that the fundamentals are definitely negative. When I talk of fundamentals, I am talking in terms of a higher trade deficit, possibl