USD/INR update: As updated in one of my earlier posts, target of 62 is here. I had clearly pointed out in that post that RBI's move will back fire and it surely did. RBI has surely made a mess out of the situation and salvaging the same from here is not going to be an easy task. Although, personally I will not blame this grim state of economic affairs entirely on RBI( since they have limited scope ), they could have certainly tried out a number of fire fighting measures much earlier. Government has most certainly dug their own grave with a record number of corruption charges against them. Tons of lakhs of crores which have gone into various Swiss/politician's accounts, evading government's exchequer has ballooned up government debt/CAD and our currency is only exposing the mess the government is in. Having kissed 62, USD now has resistance at 63.5 and my eventual target is 65.62 before a meaningful correction. This is definitely not the end of the road for USD/INR. Memories of 1991 economic crisis must be already playing in the minds of our politicians. ' All talk and no play ' is only completely sinking the already half sunk ship. With only a few months left before the next General elections, I don't see any new developments happening in Delhi except for some diplomatic talk/false assurances by P.C in various press conferences. Terrible times ahead for Indian economy......
PraDa