Its been a while since I posted and SGD INR has gone on a see-saw ride since then :). People holding SGD against INR were taken aback the quick fall from 45 to 42 in a matter of days.
As always I stick to the strategy to convert and invest in Indian NRE accounts if you are happy with a 9% yield and have a time frame of atleast 1 year.
Here is the chart that gives the implied SGD INR rate based on Interest rates…Rule of the thumb is to convert whenever the Exchange rate stays above the Red line.
The current implied rate is 42.30Rs/$, which also is a strong support for the pair.
Having said that if Indian Govt follows reforms aggresively INR is bound to appreciate and the pair would breach the line downwards.