14th May,2008,Market Calls
Author – Rajandran
Is it a play from R.B.I in Forex to decrease inflation figures
Resuming its slide against the dollar, the rupee plunged to its more than one-year low of 42.64as the heavy demand for the U.S. currency in view of high oil prices continued modest its short supply.
LTP : 1 Dollar = 42.57 INR ( LTP – Last Traded Price
RBI Governers Speech on 9th May 2008
Meanwhile, the Reserve Bank of India Governor Dr Y. V. Reddy said the situation is reflective of the “global uncertainties”. The rupee’s weakness is contrary to the apex bank’s expectations of its strengthening.
The RBI has hiked cash reserve ratio to 8.25 per cent, though it is yet to come into effect fully, to tighten money supply.
A tighter money supply should have triggered the rupee to move in the opposite direction, a dealer with a private bank said.
Rise in ruppee is strongly motivating I.T and Steel Sector as steel and I.T stocks surged today. So Stay stuned to I.T Stock for short term. I.T sector remains my next big bet in the Stock Market