EXPECT WEAK INDIAN RUPEE

USD/INR TO MOVE HIGHER

Just a couple of days ago I read that a prominant hedge fund manager believed that the Indian rupee is undervalued and as a consequence the fund had invested in this currency. Running through the InvesTRAC short term currency this morning I noticed that weakness is being signalled by the unit. So for the purpose of the exercise the short term OB/OS indicator of the USDINR has turned up from 49.5 on Dec 17 to 54.6 with rising Direction Indicator signals a rising dollar (weak Indian rupee) and the forecast shows that the rise could continue into late February.