The Rupee has been enjoying its moment in glory for some days, not because India's fundamentals changed over night, nor the FDI flow increased dramatically as the investor suddenly found the country and the government attractive.The reason being , the dollar took a back seat for few days, and lost its value against major currencies.
Now, the prime indicators showing the state of the US Economy just went up and it confirms that the US economy is on the right road for recovery, and the haziness of the past data is slowly clearing.The Dollar strengthening has a different implication for the Rupee which cannot boast of such data, or a reason to be strong.Will now weaken against the Dollar, and we could see it soon below the 61.50 level and if the trend continues we could even see below 62 marker.This is going to take a toll of the rate sensitives which has been recently flying high in our markets.
If one did notice today, the real estate sector was the first to be hit by profit taking, followed by the banks, next we shall see the capital goods and finally by the Auto sector.This will bring the market back to a realistic level and not stay at the hyped level.
Now, the prime indicators showing the state of the US Economy just went up and it confirms that the US economy is on the right road for recovery, and the haziness of the past data is slowly clearing.The Dollar strengthening has a different implication for the Rupee which cannot boast of such data, or a reason to be strong.Will now weaken against the Dollar, and we could see it soon below the 61.50 level and if the trend continues we could even see below 62 marker.This is going to take a toll of the rate sensitives which has been recently flying high in our markets.
If one did notice today, the real estate sector was the first to be hit by profit taking, followed by the banks, next we shall see the capital goods and finally by the Auto sector.This will bring the market back to a realistic level and not stay at the hyped level.