Hushed voices from the Banking circles speak of a Indian Rupee to USD ratio at 40 by mid-summers. This carefully orchestrated move on the part of the US Fed is aimed at curbing imports using the age old weapon of currency debasement. As the US Dollar plunges all commodities will see a vertical rise, making everything exported from Asia to the US unviable in price. Currency appreciation could move more US easy money into Asian Debt, while a hike in commodity price will all but destroy local economies. As it is, India's largest exports to the West comprising IT services are based on three arbitrages-currency, labour and tax breaks. If all three collapse as seems possible, the next two sectors to be severely mauled by the FIIs would be Technology and Pharma...so brace yourselves.
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