Now that the Credit Freeze in US is thawing, tide of Dollars is also going to reverse. I think the reason Dollar went up against all the currencies(except yen for the same reason though) is that US money was invested in all corners of the world. When the Credit Crisis happened, the US investors bolted from these market, dumped everything they had in local investments to convert to Dollars and brought that money over to US.
With the Credit Crisis blowing over, some of this money will find its back to these markets. In January, with the start of new financial year, US investors will start putting their money in various countries including India. Also, the price of Oil is now more reasonable and therefore I would think that the rupee now should appreciate to 45 like levels by Jan-09
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