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Commentary

RBI Selling Dollars?

RBI’s latest forex reserve page shows that we now have $296 billion with us. The rupee doesn’t seem to give a hoot. It’s trading at 43.78 to the dollar, which is pretty darn high.

FIIs are selling. Oil’s stuck at 115. Is the RBI losing ground to the traders? They have enough money to sustain, but do they have the strength to go through with it? It will be fantastic if they are able to drive the dollar down to 40 – the current strength is quite temporary, when Fannie Mae and Freddie Mac break, the rescue effort should cause major weakening; a good time to make the rupee hit new highs.