The curious case of indian rupee..!!

[ANURAG ANAND]

If we look just a month back, there was all kind of gloomy atmosphere in the currency market. Rupee was diving towards a record low of Rs 70/$  and the crumbling stock market and rising Fiscal deficit did no good to lift the mood. But, just after a month, we are looking at sensex roaring at its 3 years high....Rupee looking confident at around Rs 61/$......How this transformation came about...? Has our "Rockstar governor" anything to do with it...? or is it just positive roll of sentiments we are observing...? Whats your say on this, guys?

[Pawan Gupta]

When recently our governor raised interest rates, I made a bet on rupee and the bet seems to have worked for me.

It is actually very vanilla yield search that has worked here for Indian rupee. High rates in India, recently and highly depreciated currency, and continued low rates in US and Europe because of delayed tapering, drove the yield starved investors to look towards India. It resulted in overseas investors buying Indian rupee and driving indian rupee up.

On Oct 17, 2013 9:48 AM, "ANURAG ANAND" <mr.aa...@gmail.com> wrote:

If we look just a month back, there was all kind of gloomy atmosphere in the currency market. Rupee was diving towards a record low of Rs 70/$  and the crumbling stock market and rising Fiscal deficit did no good to lift the mood. But, just after a month, we are looking at sensex roaring at its 3 years high....Rupee looking confident at around Rs 61/$......How this transformation came about...? Has our "Rockstar governor" anything to do with it...? or is it just positive roll of sentiments we are observing...? Whats your say on this, guys?

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[Prakhar Balasubramanian]

http://m.economictimes.com/news/economy/finance/from-pariah-to-worlds-favourite-rupee-becomes-carry-trade-pick-on-raghuram-rajans-moves/articleshow/24218912.cms

On Oct 17, 2013 9:48 AM, "ANURAG ANAND" <mr.aa...@gmail.com> wrote:

If we look just a month back, there was all kind of gloomy atmosphere in the currency market. Rupee was diving towards a record low of Rs 70/$  and the crumbling stock market and rising Fiscal deficit did no good to lift the mood. But, just after a month, we are looking at sensex roaring at its 3 years high....Rupee looking confident at around Rs 61/$......How this transformation came about...? Has our "Rockstar governor" anything to do with it...? or is it just positive roll of sentiments we are observing...? Whats your say on this, guys?

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