The emergence of one asset class
during this economic crisis has been a surprise to many. One would have
normally expected a commodity like Gold or Silver to do well. Even Crude would
have been a safe gamble to make when the global economy is on the brink of a
recession. However, the re-emergence of the American Dollar during this time has raised a lot of questions. For
India, a strong Dollar is not good news because as a floated currency, every
time the Dollar gains – the Rupee weakens.
The movement of oil prices in the
world markets has brought about the setting in of some important changes. Free
markets like the United States or the Socialist ones like India have had to
accept the fact that the very structure of the world economy is changing. We
once viewed the 100 dollars per barrel of oil as an indication to push the
panic button but after everything that has happened in the past one year there
is an inclination to believe that this figure despite being regarded as ‘high’
is still a ‘realistic’ expression of the oil scenario.
In my opinion, rupee has lost some of the aura of invincibility that surrounded it over the last 15 months. According to my estimations, between the end of January and the second week of February, rupee has shed around 3 per cent of its value against the dollar.
Winter in setting in India but the IT sector is facing the heat of the rising rupee. It’s quite clear when you see their second quarter results, which have just come in.
As expected, the problem of plenty has finally started showing its ugly face. And for developing country such as India, bitter though it may be at the first look, nothing could have been sweeter irony than this.
New Delhi: India has joined the elite club of 12 countries with a trillion dollar economy, thanks to the continuing rally in rupee against the US dollar.
The country's GDP crossed the trillion-dollar mark for the first time in history when rupee appreciated to below 41-level against the US greenbackyesterday, Swiss investment bank Credit Suisse said in a report published onThursday.
The emergence of one asset class
during this economic crisis has been a surprise to many. One would have
normally expected a commodity like Gold or Silver to do well. Even Crude would
have been a safe gamble to make when the global economy is on the brink of a
recession. However, the re-emergence of the American Dollar during this time has raised a lot of questions. For
India, a strong Dollar is not good news because as a floated currency, every
time the Dollar gains – the Rupee weakens. 
