The Dollar index (DXY:US) turned don precipitously as the fight in the Euro remained about the semantics and the sufficiency of the EUR 100 B, France stepping in to say why it should be an ESM stability pay ou t than a bank rescue. That meant the Euro us trading close to 1.26 andt the Dollar Index already 82 a full point down from 83 levels when the rupee hit 56. That means Rupee’s going to be very strong in intra day trade tomorrow.

Go Long in the July and August Futures at a good price if you want to bet with the Dollar and is hould think short the june positions to 55

Better Than Expected Economic Data (Photo credit: Thomas Hawk)

India’s monetary supply data trended with growth in Deposits to a safe 13.7%. I would say numbers below 16% are even anemic for growth but definitely that means the inflation report tomorrow will be a brilliant 7% or even lower unless the Economic data is not in sync. The base effect on the IIP hopefully is the only thing that is keeping it low now as Infrastructure looks at ne investment and other sectors of the Economy also report higher investments this quarter, reigniting confidence in the Economy

Posted via email from The India Investment Post