01-05-2004, 10:05 AM
I totally agree with CBPian, the changes in interest rates are all due to the economical reasons, as said quite rightly in the previous mail.
However, as CBPian suggested that alternatively, you could invest in FX markets, but yet again there is a risk of volatility in the money market that appreciate/depreciate the price of currency in FX markets. A prime example is recent depreciation in the value of US$ in terms of Euros and Sterling. Also, the Japanese government intervened in the market, through BOJ, and sold and still sells billions of dollars every other month, to raise the value of yen against the big currency.
So, Muqtader, the Forex is quite risky as well, but depending upon your resources / capital, you could always buy derivatives to hedge your risk factor.
Relating to commodities, surely they are also linked with the price of US dollars. You would have noticed recent peaks of gold, other precious and base metals prices, due to the fall in US$.
So, trading itself is not quite easy, if you donât limit your loss.
AHSAN