In an extraordinary move that reflects the gravity of the financial turmoil, the world’s central banks on Wednesday announced coordinated interest rate cuts as they try to restore confidence in the economy. Included in the decision to cut rates were the Federal Reserve, the Bank of England and the European Central Bank as well as those in Canada, Sweden and Switzerland. But it didnt matter mcuh for the markets.. A 2.5% gain hours before the market closed, vanished in a snap!! Emotionally draining markets.. I was wrong in my prediction that there would be a rally today!!

Britain’s largest banks were preparing on Wednesday to boost their capital reserves after the government launched an unprecedented £400bn rescue plan to restore confidence among financial institutions. The three-pronged plan, rushed out Wednesday morning, could see the government investing up to £50bn in banks while offering guarantees over as much of £250bn of new bank debt and adding £100bn to the existing Bank of England short-term loan scheme.Following the foot stpes is the treasury, is considering taking ownership stakes in many US banks in a bid to restore confidence in the battered financial system

USD to Indian Rupee exchange rate:

and the intraday chart:

amazing that it touched 49.. if things continue to be like the way they have been, I would not be surprised if it hits 50!!! So if you want to transfer money to India, this is the right time!!!








A veteran's description of an abnormal day, ie. today:
http://macro-man.blogspot.com/2008/10/open-threadrunning-diarybrain-dump.html