Now where is the guy Desperado who was creating new thread every day when dollar is going. Even then I told him this is short term volatility and fundamentals of current account are very good so dollar will return to its previous value. He was bashing state bank governor and government, lets see if he praises them now.
But the fact is that dollar is now in free float and the price is determined by supply and demand. Govt and state bank should NOT interfere in market. This is how it is throughout the world and only in 3rd world countries where economy is run by accountants do we have this notion that dollar price should be controlled. Yes free float means volatility will be high so importers and forex traders will suffer. However, traders and importers add nothing to the economy. They don't build anything, they don't make anything of value. They just keep markup and sell it to wholesalers. These people should be discouraged.
Instead of importers, Govt should support exporters, manufacturers and industrialists. These are people who make real world stuff that requires labor and professionals to build stuff and manage operations. These people creates jobs and also create opportunities for new small businesses down the supply chain.