Bernanke Buys Time for Brazil to India as Rupee Leads Rally

[Jade]

The Federal Reserve’s surprise decision to refrain from scaling back monetary stimulus provided a respite to investors in emerging markets, where currencies are in the midst of their worst rout in two years.

“It gives everyone some breathing time,” Denise Simon, an emerging-market fixed income manager at Lazard Asset Management, which oversees $147 billion, said by phone from New York. “It certainly takes some of the immediate pressure off the more vulnerable countries. Emerging markets will continue to correct on the upside as the result.”

Bernanke Buys Time for Brazil to India as Rupee Leads Rally - Bloomberg

Rupee is now trading at 61 a dollar.

 

[xyxmt]

The Federal Reserve’s surprise decision to refrain from scaling back monetary stimulus provided a respite to investors in emerging markets, where currencies are in the midst of their worst rout in two years.

“It gives everyone some breathing time,” Denise Simon, an emerging-market fixed income manager at Lazard Asset Management, which oversees $147 billion, said by phone from New York. “It certainly takes some of the immediate pressure off the more vulnerable countries. Emerging markets will continue to correct on the upside as the result.”

Bernanke Buys Time for Brazil to India as Rupee Leads Rally - Bloomberg

Rupee is now trading at 61 a dollar.

if a statement from Fed can put Indian economy in a roller coaster then there is something wrong, was US showing India who is the Boss here?

 

[Jade]

if a statement from Fed can put Indian economy in a roller coaster then there is something wrong, was US showing India who is the Boss here?

It is supply and demand. If supply increases the demand decreases, and if supply decreases the demand increases. That is how currencies function...remember we live in globalized world.

 

[acid rain]

Any assumptions to how much the rupee might climb?

if a statement from Fed can put Indian economy in a roller coaster then there is something wrong, was US showing India who is the Boss here?

Something is wrong if one is a developing economy and global cues does not affect.

It means it isnt developing or is already a developed one or is an export driven economy.

 

[AADHAAR]

hmm.. good for india, but unfortunately bad for me.

I was stockpiling dollars for repatriation ... hoping for an NRI issue.

Now what do I do with all the dolllars I saved and pulled out of investments !!!

Sheeeeet.. I missed the golden chance.... I should have pumped back the money last month.

Sheeeeeeet.... the day Raghuram rajan joined as RBI Gov, SGD went to 53.70 to the INR .. now it's 49.60 !!!

Ek mauka aur milega .... please dears...

 

[Echo_419]

We must use this opportunity to Increase the Exports
Reduce CAD
Increase the Buildup of Infra sector & for god sake speed up the Burecracy
No need to jump up & down right now

 

[Raphael]

It seems the Rupee is at the complete mercy of the US Federal Reserve. They've decided to be forgiving this time, by u-turning from any plans to taper. But what will happen once those plans get inevitably implemented in the future?

 

[Maira La]

It seems the Rupee is at the complete mercy of the US Federal Reserve. They've decided to be forgiving this time, by u-turning from any plans to taper. But what will happen once those plans get inevitably implemented in the future?

No worries. They have democracy.

 

[AADHAAR]

It seems the Rupee is at the complete mercy of the US Federal Reserve. They've decided to be forgiving this time, by u-turning from any plans to taper. But what will happen once those plans get inevitably implemented in the future?

You have to wait for what happens in future ... I can understand you are impatient.

For now, we got rid of a lot dollar liabilties cheaply .... everybody who bought dollars at 67, lost money. They could have waited and got more dollar with the same number of rupees (the price being 61 now).

And if they enter again, now, the dollar gets them 61 only, for which they paid 67 a few days back.

Those who sold dollars and bought rupees, won the round one. (RBI didn't intervene much, but still did make quite bit of money it seem).

Perhaps, since 57-58 is said to be the fair rate, that would be the time RBI should start the opposite game .. buy dollars at 57.

 

[rockstarIN]

How much you hate usa.....does not matter ..it is dollar which is a trade currency in the market