Rupee shoots up against US dollar- Forex-Markets-The Economic Times
In tandem with the upswing in equity markets, the rupee, after Monday’s brief pause, on Wednesday shot up by 60 paise to end at a nearly 4-week high of 48.98/49.00 against the dollar on expectations of more capital inflows.
In fairly active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened sharply higher at 49.18/20 a dollar from the previous close of 49.58/59. (via Rupee shoots up by 60 paise vs US dollar- Forex-Markets-The Economic Times).
In the middle of the 26/11 terror in Mumbai, the increase in India’s foreign exchange reserves got missed out. This may be an early sign of the dollar crash. For the last 6 weeks the dollar has been unusually strong – due to demand for dollars to meet redemption pressures in the US.
That redemption pressure are receding – and the reality is where will the dollars go? Stagnating Europe, geriatric Japan, despotic Middle East. The choice is BRICS (BRIC + South Africa). And amongst the BRICS, India is particularly attractive as a destination.
First sign of dollar reversal?
I believe ya Zardari
The entire 26/11 terror incident has taken away the focus from the global currency crisis. This benefits only the US and the Europe.
This also takes away another 6 months – and then the election. By the time this gets on the Indian radar screen, it is another 1 year now. I wonder who was REALLY behind this 26/11 incident.
Zardari – I am willing to believe, ya!