Rupee Falls Low, Some Forex Traders Look For A Gain

Rupee, the Indian currency, did not seem to struggle out of the situation the global economic crisis has dropped it in. After staging a record fall against Dollar a few months ago it showed some signs of recovery. But it has fallen again against the Dollar to reach its lowest value in the last one month. The Indian economy, though currently not in the same state as the European one, is undergoing a tumultuous phase since the last few months. The inflation in Indian consumer markets has skyrocketed and the government has been able to do a very little to reign the rise of prices. At this juncture it seems that India has to endure the shocks of global economic crisis for some more days.

The fall of Rupee

The Rupee staged a record fall against the dollar a few months ago. Its value reached nearly 57 against the Dollar. After much struggle it recovered a bit but has fallen again to arrive at 53.84 per Dollar. It incurred its biggest loss of 1.9 percent on a week since June 2012. Oil companies who are the largest buyers of dollars in the Indian currency market continued to buy dollars throughout the period. Moreover, there was a demand for dollars from foreign banks as well.

Rupee FallForex traders’ stand

Forex traders are opining that the rupee is vulnerable to more falls and can cross 54 in the next week. This seems feasible as Euro is likely to fall due to the uncertainty on Spain’s request of bailout. According to some forex traders this is high time for exporters to sell and they expect to this selling to continue even if above the 54 level. Some senior forex traders are saying that a lower opening in the stock market and dollar’s gains against other currencies in different markets also put much pressure on the local currency.

The Indian market does not seem to recover soon from its current state. It will take time for any government measure to take effect. Till then the Rupee is expected to be in a position of uncertainty and ups and downs before coming to a rest. The European economy also does not seem to show signs of recovery soon. However, the uncertainty regarding Spain’s request of a bailout has made the situation even more volatile. It is important for forex traders to keep a close watch on the day to day market situations to avoid losses. However, with the fall of Rupee against Dollar some forex traders are looking forward to earn some profit amidst uncertainty. It is needless to say that the fall of Rupee does not indicate to a healthy state of the economy but perhaps under present conditions that is inevitable.

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