Investment • 700 • 1
The INR continued its downward march and locked at 83. India's central bank is selling dollars for a stable Rupee. Currencies of Asian markets are struggling, including Japan. Last month the British pound made a record low against the dollar. Euro is also under arrest.
Try not to purchase any bank stocks for trading. Analysts did not ask for panic selling as leading banks had good performance in the last Q1 and Q2. Banks suffer when the Rupee falls against the dollar.
It is anticipated that a 'market correction' stage can take two more months to stabilize the currency. The US oil debacle and the Russia-Ukraine war are key regulators of the currency conundrum.
The same red flag is applied to your forex trading in the Banking sector.
The difference in currency values brought on by interest rate risk can significantly alter FX prices. You can have the advantage of weak currency while selling top international bank's stocks, but keep aside buying decisions till domestic currency is getting an advantage.
In times of high volatility, it may be feasible to make returns above normal, but you also risk losing more money in a shorter length of time.
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