Monday, October 22, 2012

Is it time to buy USD/SGD?

SGD is almost at a year's high against USD, SG economy is not doing that great recently and, I think, SG property is due to a big correction. Are these reasons enough to start buying USDs and selling SGDs?


Short US Dollar against Indian Rupee

Have been making little bits of cash by shorting USD against INR. This is based on a few simple reasons
- Indian Rupee had been whacked over the last 12 months or so. I don't think things can get any worse
- I believe Indian Government will be forced to step in and whatever is needed to stem the fall. They have showed this resolve by relaxing the FDI norms around some of the sensitive sectors
- There is scope of higher profits (INR appreciation + interests)
- Loss would be buffetted by the interests on INRs in case of further depreciation