why inr did not weaken post cad numbers

Why INR did not collapse post Ugly Current Account deficit numbers?April 12 2013

Deepak SinghStateofthemarket.netTwitter: smarket

Current Account Deficit

Oct-Dec Quarter Current Account Deficit peaked at 6.7%

There was fear of INR

collapse post that number

Reverse happened:

INR strengthened

Current Account Deficit Problem

Two Big Problem Items

CrudeGold

Brent Crude: Dramatic Decline

Gold: Dramatic Decline

Problem Self correcting

Fact: Current Account Deficit situation may not worsen

The way Crude and Gold has collapsed

gives a lot more comfort to the Govt

There is no trigger for INR to decline looking at future

What to watch out for

What’s the outlook for INR

INR may remain lackluster

Trade in 53-55 Band

A breakdown below 55 may trigger decline

But watch out Capital flows…if FIIs start selling

aggressively…it may derail INR

www.stateofthemarket.net

Thank You

• Disclaimer - The state of the market presentation is Deepak's perspective on the market. The presentation is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this presentation you agree to make no trade relying in whole or in part on the comments of the writers

• Chart Source: Chartalert.com

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