Wednesday, November 23, 2011

Rupee update

RBI's aggressive presence has prevented rupee posting another all time low above 53 and was not good enough to guide a reversal into 51.50-51.00. It is not going to be easy to drive rupee up against weak EUR/USD and NIFTY. There is huge demand from NDF arbitrage as well.

Another issue is that FX woes are spreading to MM. Call money above 9% is matter of time. The risk is of trigger of additional LAF counter at 9.5% to push overnight MIBOR into double digit.

Strong bearish set up across currency; money and equity market.................cash is king.

Moses

No comments:

Post a Comment