Exchange Rate- Suitability of Currency Basket

THE pound sterling has sunk heavily during this month; on April 24, it touched a new low when its effective depreciation from the Smithsonian parity was as much as 22.5 per cent. The. Indian rupee, linked as it is lo the sterling, thus daily fluctuates against other world currencies along with the sterling. Only a few months ago, the sterling improved against the dollar, but that was for no basic economic reason