Logic and prudence says it is better for investors to buy dollar at the moment, and I would say it should be a short term resolution. Yes we could see some more upward movement for the rupee, but things could dramatically change and we may see 65 rupee level in a 9 to 12 months span.This would be a conservative figure if we are able to keep cad down and gold locked up. If gold is let loose then we could see some increase and and export is the key which is linked to the global economy, and any slow down would hit the effort.
The inflows of dubious nature is strong at the moment, and how long will it remain in this country is also unknown.The swaps made earlier to hold the dollar is also taking its price with a drop in the reserve and this will be there for some time going forward, provided we do not have to make more swaps in future.
The election outcome and a stable government is the key to the future of the rupee any change in plans will bring back the memories of last year once again.
The inflows of dubious nature is strong at the moment, and how long will it remain in this country is also unknown.The swaps made earlier to hold the dollar is also taking its price with a drop in the reserve and this will be there for some time going forward, provided we do not have to make more swaps in future.
The election outcome and a stable government is the key to the future of the rupee any change in plans will bring back the memories of last year once again.