Jas Jain Rupee to Dollar Target Price

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Subject:	Indian Rupee—FW: Why the US Dollar Has Held Up Despite Bearish Sentiments and Bernanke's Policies
Date:	Tue, 13 Dec 2011 08:35:41 -0800
From:	Jas Jain

Indian Rupee—FW: Why the US Dollar Has Held Up Despite Bearish Sentiments and Bernanke's Policies

"The dollar has gained nearly 19% against the rupee since March, making it Asia's worst-performing currency this year."

http://online.wsj.com/article/BT-CO-20111213-705115.html

Please see the appended warning on the Indian Rupee and calling the bottom in the USD 15 weeks ago. Indian financial system's breakdown could happen any time over the next two years, including next week or next month or next quarter. Only fools wait, or try to time it too finely.

Jas

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Aug 25, 2011, 11:03 am

Why the US Dollar Has Held Up Despite Bearish Sentiments and Bernanke's Policies

In one word: VALUE. It is undervalued against almost all fiat currencies including the Indian Rupee (INR), a currency of dubious value (my target is USD = 100 INR within 3 years, currently at 46).

Please see the attached chart of DXY, the dollar index, for how it keeps bouncing back once it goes below 74.

Bernanke is as impotent to help the US economy now (he can only hurt if he tries more tricks) as are American voters to get a change for the better. The USD, at the current level, has fully priced these negatives, including idiocy and ineffectiveness of Bernanke's ideas, against other currencies whose leaders aren't that much better. Relative value matters.

Jas