why inr did not weaken post cad numbers
TRANSCRIPT
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
• You can send me feedback at [email protected]