The rocket rupee

It does feel like we are close to the end of the rupee's rally, says Jamal Mecklai

Technically, it is beginning to appear as if the rupee rocket, which has shot up by nearly 3.5 per cent in the past six weeks, could soon run out of steam; as the chart shows, 72.50 seems to provide a very difficult resistance level.

Already there are some exporters who are thinking of cancelling forward contracts booked at wonderful rates to encash some part of their MTM (mark-to-market) gains. And, while it is always dangerous to try to best the market, it is sometimes hard to look away from apparently “easy money”.

To assess this opportunity, we need to understand, first of