INR may not stop @54...
Since I wrote this a few things have changed....
- Gold imports into India have collapsed by 40-50% in volume terms.....
- FIIs have poured in large quantum of dollars into Indian equities.....
But
- Crude oil prices are still hovering around 110-115$....
- Exports have suffered...so trade deficit has not declined materially...
So whats the result all put together...??..
We have USD-INR trading at around 55.72 right now....
Continuing my play with the double edged sword...I suggest that USD-INR in the 60-65 range might be reality sooner than later.....I am no expert but this could happen within the next one year....
(Standard Disclaimer : The probability of my opinions going horribly wrong is closer to 1 than to zero!!)
