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dollar, euro, gold, rupee

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dollar, euro, gold, rupee Empty dollar, euro, gold, rupee

Post by truthbetold Fri Jan 27, 2012 10:09 pm

The value of currencies and commodities are moving in really intricate ways.

Gold was zooming to moon in June 11. Dollar was tumbling.

Then Euro zone crisis started making news. Euro started slipping.

By October Dollar became safe haven again. Dollar strength, euro weakness, and hunger for dollars by major Indian Industrial houses and importers caused hoarding of dollars at the expense of rupee. Rupee tumbled more than 25% between august and december of 2011.

Gold lot of its luster and went down to 1530s in late december.

ECB pumps liquidity into debt stricken eurozone. Market did not like the amount. But Merkel said go fly a kite. Market slowly agreed to play ball. Eurozone bagan to stabilize. Rupee improved.

Fed declared that interest rates will stay low till late 2014. Dollar bagan to sink.

Now emerging market currencies are gaining. Gold is the safe heaven again.

Story is not over. But a lesson for desi. Political intervention makes a mockery of all financial prognostication.


truthbetold

Posts : 6799
Join date : 2011-06-07

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