India is about 1/3 the size of the United States, yet it is the second most populous country in the world, with a population of 1,166,079,217 – (wow that is packed). India is the largest democracy in the world.
The Indian Rupee has recently taken a considerable hit vs USD and looks to be setting up for a bit of a rebound.
I don’t trade it ( in fact my broker doesn’t offer the pair ) but I did find it interesting , to pull up a chart of USD/INR which does look very overbought.
There has been alot of talk that “forex trading” is actually illegal in India, but after doing some looking around I’ve come to learn that the actual “trading activity” isn’t illegal as such – but that there are considerable restrictions on “how much” money can deposited and traded.
Apparently it “is” illegal to take Rupee out of India, but this is only loosely enforced.
For anyone out there that “does” have an opportunity to trade Rupee………Rupee!
I’ve been liking the Rupee a lot ever since the USD/INR broke 60; caught a nice move shorting it above 61 down to 60 yesterday and hoping to start loading some shorts around 60.50 today.
One reason I like this pair is that the government is very concerned with the Rupee weakness lately and longer-term I see a very large rebound in the currency as the economy of India starts gaining traction again in the future.
Also, you really can’t beat that Yield everyday, and since I’m trading small I can be stubborn and hold on for the long haul while collecting that yield; it’s easy to be patient that way.
Fantastic input David – I was hoping some other readers might shed additional light on the pair.
I find it very interesting, and yes would imagine it looks to be a great trade moving forward – technically as well as on a fundamental basis.
Yes It Is very intersting..
Out of Curiosity Kong, does your broker at least offer MXN, ZAR and TRY?
The South African Rand (USD/ZAR) and Turkish Lira (USD/TRY) offer a nice yield as well and have been pretty beaten up by the dollar lately. As a contrarian, I like them more the weaker they get, for me, it’s like getting something on sale.
Yes Ive gottem – just that the margin requirements are also relatively high so – I don’t tie up alot of capital in things long enough to see a return in a “yield sense” and need to extract profits regularily as it’s my living.
That is one thing I don’t like; plus the spreads are usually a lot higher than they are in the more common pairs.