The Economic Times reports that the Finance Minister yesterday said, "...Now, should we link national honour with the price of rupee? Should we link national honour with the price of potatoes and onions?" We laud his statement, an unexpected flash of maturity.

Let the market take the Rupee to 43.00-43.20-43.50-44.00. We think these are all levels to sell the Dollar.

Perspectives

We have heard the following respectable forecasts (not the 50-60-70 variety):

Forward Rates available at 11.30 am on 23/6/98 (working off a Spot of 42.90)

Implication: Taking available forecasts into account, it makes more sense for Exporters to sell Dollars than for Importers to buy them.

If anyone had sold Dollars 5 months forward (to coincide with current date) at the high of 16th January, 1998, he would have got the following rates:

Implication:The Dollar seller of 16th January has not lost by selling Dollars.

Suggestion
Sell Dollars from now (42.90) upto 44.00. Do not buy.

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