Rupee & Gold
Big moves in the rupee-dollar exchange rate (now at ~ 42), and therefore gold in Indian rupees:
Among the comments made by the PM after winning the trust vote was the need to ‘control import inflation’. Between that and the fact that the RBI holds $300B+ in dollar reserves, where do you think the rupee’s headed? 41! 40 even. Gold, of course, got hit by a double whammy - a correction in global gold prices, followed by a sharp strengthening in the rupee.
Don’t be surprised if Indian inflation drops much faster than what most people expect.
Related Posts: