The 11 AM Update: The Rupee move is ominous

Today’s surprise Rupee move has found ide ranging acceptance letting it target 56 with much more certainty and riffing more blues for yours truly and India inc as inputs have a cascading impact and Dollar gets set for a Yen like ride as the banking currency without any beneficial impacts for Americans

The BofA attempt to stay American under Treasury diktat and the Wells Fargo success in mortgages apart the US economy is exposed to a litany of tirades bu tthe currency is dodging them with its exalted reserve status and ultra low yields yet miles away from the 10 year JGB auction at 0.9% and lower  but no QE and thus also keeping it strong and mighty. The Euro enters the ring today with the same characteristics, getting stronger on extra liquidity and no economic performance required run but will likely fall after results from the conference cut it before its 1.26 retracement levels

Equities thus are run by the fear of the currency trade instead of the currency following a good day for equities and a sea of red might soon replace resplendent bellwether stocks incl ICICIBANK even as IDFC and the low to mid cap infra plays dip down and leveraged realty plays get out of fashion first. 

Yet somehow, all of it looks unlikely with retail spends on the rise and disposable income risingin the US and in India ithout returns from the Dollar. China is facing an exodux of its currency as citizens rush for offshore land and even migration licenses/certificates and shpping visa to the USA


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