The top three best performing currencies against the Dollar this year are the Hungarian Forint, the Mexican Peso and the Indian Rupee.
We've already discussed the Forint as well
as the Peso, so now its the Rupee's turn. The Rupee has had a remarkable run in 2012, especially when one considers how it finished in 2011.
The last time we discussed the Rupee
was back on December 20, 2011 and in the post we talked about the National Export Initiative program in the U.S. which contained the stated objective of doubling U.S. imports during the period of 2010 to 2014. The most expeditious way to achieve that goal is to devalue one's currency, which appears to be the route that the U.S. is choosing.
Two thirds of all global currencies have strengthened against the Dollar so far this year.
As for the effect that the strengthening currency has had on India's equities, it has been positive since India had been dealing with somewhat of an inflation problem during the latter half of 2011. The inverse correlation between the USDINR and the benchmark BSE Sensex 30 Index has been particularly tight in 2012.
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