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Indian Rupee rises for fifth straight week, to hold steady in 2012

foxbat

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Jan 31, 2010
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Rupee rises for fifth straight week, to hold steady in 2012 - The Times of India

MUMBAI/BANGALORE: The rupee posted its fifth straight weekly gain on Friday, aided by a gush of foreign funds as investors bet on a monetary easing to boost growth in Asia's third-largest economy.

Foreign funds have bought $2.6 billion of Indian shares and $3.2 billion of debt so far this years, data from the Securities and Exchange Board of India showed.

"There was buying on euphoria that rate cuts are coming, that inflation is on a secular downturn," said Sailesh K. Jha, Head of Asia Strategy at Skandinaviska Enskilda Banken in Singapore, who also noted a return of "risk-on sentiment".
 
RBI would quite happy .... they sold dollars between 51 and 53. The speculators who sold between 51 and 53 lost it.

RBI can buy back at 48 (and make a cool 10% return in the process), if the market speculators try to push the rupee above 48.

It will be unwise to let the speculators push it the other way now.
 
I'm loosing money on this, Gold appreciated a lot in western market, while its minimal in India coz' of rupee appreciation. :cray:

Yes, that's why RBI should not let rupee go over 48. RBI has a stated objective of reducing the volatility of the rupee ..... if it goes above 48 (to say 45), then more likely it will swing the other way too.

Only that if the speculators force it to 45, then RBI should buy dollar with even greater rigour.

Exporters both would also prefer a stable rupee .... low volatility means lower price to hedge forex (by means of cheaper options). Good for everyone.
 
personally it's been good. I sent over quite a bit of USDs when INR was weak.
So a rising rupee is music to my ears :D
 

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