Monday 08, October 2012 by Matein Khalid
Currencies - Strategy ideas in emerging markets FX!
Last week’s FX trade of the week to sell the Australian dollar at 1.0450 for a 1.2000 target worked out exactly as I expected as the RBA cut its policy rate, contrary to Street consensus. Sterling has not lost its sizzle yet but Rome was not built in a day and Athens was not built without marble. The September jobs number has boosted risk appetites (strong economy means lower dollar in the surreal world of Wall Street!) and it is hardly possible to get riskier than emerging/frontier market equities (once known as the Third World, now hailed as growth markets!). The Indian rupee is definitely on a roll now that the UPA government has embraced pro-market reforms with a vengeance. Time for 50 INR before reality hits?
