02.10.2012 - Commodities and the Rupee disconnect
Over the last few weeks, the Indian Rupee has shown another one of its sharp waves of appreciation. The move has been quite a linear one with the support of central bank, while in the past such sharp moves were met by intervention to support the dollar. This move in the currency has startled and struck many traders and hedgers in Indian commodities markets. In this report, we present some pointers, which should help us in planning a better strategy in the coming months to deal with the disconnect in the international and domestic prices of commodity futures. To begin with, let us look at the factors that have been responsible for the Rupee’s move...............................................Full Article: Source
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