Rupee Vs. Dollar..things are changing now!
Posted on April 9, 2008
Filed Under Global happenings affecting Indian Economy, Investment Guide, Market News & Discussions |
You have heard everywhere US Dollar is depreciating and Indian Rupee is appreciating. Well this was true till now (i.e. March 2008). Things may get exactly opposite from now. You have seen rupee getting stronger and stronger from 45 to 43 and now to the levels of 40! But after this rupee is seen betweeen 39.20 to 40.10 from last couple of months. During November 2007 it was around 40 and now in March 2008 after 5 months it is still roaming around 40. Technically this behaviour is called “rounding bottom”.
Also the last 5 months were very different and historical for investors. SENSEX slipping from 20k level to 14k, gold appreciating more than 20% in just few months, Crude Oil prices touching levels of $110 per barrel, the US slowdown in economy, the US sub prime crisis and now inflation rising to 7% are some of crucial events happened in the past 5 months. Most of the things were bad for the US dollar and it should have weakened further and rupee should have gotten stronger, but this has not happened. Instead the rupee is still roaming around 39 and 40. Technically the dollar is expected to become stronger than rupee and we may see rupee get weaker to 41 or 42 in comming few months. As investors we should now look forward to invest in companies which will benefit from the rise in dollar. IT sector will be the most hit, but this time if the Dollar Vs. Rupee follow technical pattern then this time this hit will be a positive hit.
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12 Responses to “Rupee Vs. Dollar..things are changing now!”
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kartik on April 16th, 2008 5:28 pm
Hmm.. seems like IT stock days will be back again.
swan on April 16th, 2008 5:30 pm
May be that the currently dollar is weak because of various reasons you stated but I still think globally its the most used currency used for international trading and so it won’t loose it’s value in long term.
rohit on April 16th, 2008 5:32 pm
Good point of view, would like to see more posts which can guide new and unexperienced people like us..
bhola on April 24th, 2008 5:54 am
Good speculation but will probably be wrong.
Shakti on May 17th, 2008 9:46 am
Definitely with strong dollar Indiancompanies having large bsines in US will benifit from this and so are a buy proposition right now.
doss on July 2nd, 2008 9:50 am
now its ok…but its tottering….
so its always better to deal with rupees(equivalent of dollar) na…
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Ridhima Bhula on August 18th, 2008 4:09 pm
Looking at the American economy it is very hard to digest that the dollar will appreciate. The market is highly volatile. On a single day it fluctuates from 40 to 42. It may not be correct to make investment decision with the expectation that dollar will become strong. To know more about investments log on to http://www.apnapaisa.com
kunal gupta on September 17th, 2008 3:34 pm
now rupee in the intl. market has almost corrupted
$ vs rupee is now 46.50
what about the importers man they are in a big trouble
the domestic market is not ready to rise the prices and the imported goods are getting costlier
so now importers are becoming bankrupt
what do you say about it will rupee get stronger in upcoming months to benefit the importers
Anurag on October 15th, 2008 11:52 pm
Dollar is considered to be a safest investment in case of financial crisis.
At this time we are going through a period of global recession. European countries are going through more bad times than US. Asian countries are also hurt.
Appreciation in US dollar also means that Indian consumers will cut on their import expenditure of luxury items, and try to satisfy their demand by buying goods from local Manufactures. Thus it will help in further reducing the inflation in our economy. Consequently, it is true that it will become very hard for Indian Importer to survive and continue their operations. Government debt will also increase, and in response government would also try to find an alternative to further reduce their import levels.
On the other hand, it will be good for our country export, US and other nations will try to export more goods from Asian countries.
Therefore, it is a matter of analyzing little things around us, like the person who wrote this article predicted the appreciation of US dollar by just figuring out a rounding bottom.
SRIKANTH on March 13th, 2009 4:59 am
nicee….