Saturday, June 2, 2012

Short dollar, long rupee

Time for reversal. The dollar has appreciated significantly versus the INR over the last few months. I believe that things converge to the mean. Euphoria ends - today or tomorrow. And the euphoria around the dollar is over done. Yes capital outflows on account of poor domestic macro economic data, fiscal deficit, current account deficit and blah blah. However me thinks that the INR will start to appreciate back to 51 levels.

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