Monday, December 10, 2007

Forex reserves cross $273 billion !



There is a possibility that the US Federal Reserve may reduce interest rates on Tuesday. If such an action is taken, there will be more dollar inflows into India and the Rupee may appreciate.

Already the forex reserves have crossed $ 273 b.

Nasscom, the Software Agency, has warned that troubles times are in the offing for IT companies, because of the rising rupee. Even though the software industry is growing by 28%, in the long run, IT companies may be worst hit by the rising rupee. Nasscom President Kiran Karnik said so last week.

But since dollar flows are likely to continue, the Sensex may still hold on to high 19000 levels. At the moment, it is 36 points down, to 19926.

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