2014 begins ~ Currency Wars begin ~ An Omen?
Argentina devalued it’s Peso by 12% leading the Currency Bloodbath last week with the Turkish Lira sinking too
Our Indian Rupee flirted briefly to appreciate below Rs 62 to the US $ only to depreciate back to over it as the week closed
Currency Depreciation affects Current Account Deficits and Countries Economies especially those that have a skewed Trade Imbalance with Significantly Higher Imports (largely Crude Oil) than Exports
Be Prepared in 2014 to see Multiple Currency Wars and an Explosive Cocktail between the three leading Rates :
Exchange ~ Inflation ~ Interest
An Omen we shall have to continue to live with !