US dollar Index is on the edge of the mountain and it's really is a ticking time bomb. Dollar has to hold the psychological level 80 on the US dollar index and it may oscillate between 80-82 for shorter time frame. If that looses the ground to the down side then we might see distress in bond market US treasuries as dollar save haven is gone for good as US dollar has no fundamentals to drive other than printing money for debt. Money is flowing into different other currencies (mentioned in my previous post espl Asia and Canada) and precious metals is best place to be especially silver (will outperform gold) and gold.
What will be the US dollar to INR down the road?
My view on INR is that it will pop temporarily around 48-50 range at most for brief period and will fall to 45 before next summer for sure as FII money is flowing into India, Making rupee strong. 5-6 years from now we might see dollar at 30 INR or lower and stabilizing at those levels.
We might see currency crisis and at the same time commodity crisis espl food as we go coz the central bankers around the globe flooded with fiat paper currency during thier G-20 meets aprox 2-3 % of GDP this will make things lot worse than people imagine.
Most of you asked me (Uday) about the Indian markets will also post before this weekend as I'm unable to keep up with my routine. If you have any question please leave me message at the bottom of this web page under chat window that way I can be in touch with you people when I go to India.
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