The dollar has strengthened again to Rs. 40, and the Japanese Yen is at 103.1. The yen is by far the strongest I have seen in a while, and is closing in on the 2005 lows of 101.93.
The rupee has bids coming in at 40.2, a strength in the dollar that is not logical unless FIIs are pulling out. They’ve sold the last two days, small amounts though. In Jan they started selling heavily a couple days before the actual crash. (From Sebi Data)
FIIs sold two days before the Jan 2008 crash
Watch the data. We’ve had a rotten close to the US markets on Friday and it’s likely that the credit stuff is going to blow over (once more).
The credit markets are MUCH worse than we can imagine. The indices are at all time lows, and we haven’t heard from the big boys of Citi, Goldman, MS, CFC and the like. This is not going to be good.
