Time to collect dollars?

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Every country maintains a certain tolerance in their policy towards the strength of their currency. If it gets out of their comfort zone, the central bank (in our case, RBI) intervenes and the respective currency is bought or sold in huge volumes to make it even. It all depends on what RBI's tolerance is this time and until what rate will they let the Rupee appreciate.

Looks like they ain't going to intervene any time soon.

Subbarao Avoids Intervention as Rupee's Gains Curb Inflation: India Credit - Bloomberg
 
strengthening of the rupee is a double edged sword since we are highly dependent on exports. For 1- it will make our exports seem costlier thereby making countries importing from us to look at others, and 2- we will loose profits from the software sector which means the govt will have to think of other ways to fill their vault. The spoilt brat like industry here too does not help them in any way. The spoilt brats keep reaping rewards and cry when the rupee strengthens even by 1 rupee.
 
6pack said:
strengthening of the rupee is a double edged sword since we are highly dependent on exports. For 1- it will make our exports seem costlier thereby making countries importing from us to look at others, and 2- we will loose profits from the software sector which means the govt will have to think of other ways to fill their vault. The spoilt brat like industry here too does not help them in any way. The spoilt brats keep reaping rewards and cry when the rupee strengthens even by 1 rupee.
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many industries are better off with cheaper dollar, esp. oil and gas sector. the imported raw material prices drops and value addition is done at a cheaper rate than most other countries. believe non software industries prefer cheaper dollar.
 
6pack said:
in forex i think they count upto 4 digits after the decimal. so 44.3 is not used instead it would be 44.3456 something like that. since even those decimals leave an impact on profit margins i think.
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correct. Hence as some one said it is very risky, as specially when stop loss is in 3 digits after the decimal
 
^^ the matter is when he is pessimistic, there is some fundamental reason behind it.

His new letter which some1 sent to me as a fax before September 2007 regarding impending stock market crash due to housing bubble is still with me.

His news letter stating real worthiness of gold (when it was 5-6K per 10gms) which was given a year before gold bubble, is still with me. So, for me he was not pessimistic about gold.

So, I listen to such a person when he give directions on market in long run. Its not for every day trading though.
 
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