Monday, March 17, 2008

The US Dollar is back on track!

God knows what a sigh of relief I heave - when the US $ starts to appreciate against the Indian rupee.
It's stabilized a lil over 40 and I hope it goes back to the 45+ levels... Of course you importers would hate me for it!! But thats the only way of making exports rosy & viable!
So the sub-prime crisis in the US is not all that bad.... it got the US companies to shift funds overseas.... got our market down a bit.... created a demand for the US $ and consequently an increase in the Value of teh US $ vis-a-vis the Indian Rupee....
Simple economics...... but it's left a trail of destruction behind it.

I feel sad for the Americans... but amused at their sense of Logic at giving loans to those who wouldn't qualify for it in the logical sense of the word! Then Murphy struck & all risk management was thrown to the wind!!

I wonder IF they can recover from this...

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