Nick Parsons of National Australia Bank has expressed his concerns on Indian rupee and regional currencies and his views are as appended on the subject
Firstly what we really need is some sign of currency stability. The Indian rupee has had a difficult year not only in currency adjustment terms, but also weighed down on performance, which suggests that as long as dollar - rupee can maintain a level below Rs 54, you may find a little bit of investor interest coming on the basis of bottom fishing. But if we were to get the currency back above Rs 54 and we were to see other currencies in the region coming under pressure, then I think it would be very unlikely that this strong performance in equity markets in the very beginning of the year could be sustained. So what I would say is watch the regional currencies for the true state of international investor appetite because if international investor is going to buy in EM, they have to buy the currencies as well. So watch the rupee very closely.
Keep visiting our website for best stock tips for intraday trading in present environment.
