Eurodollar University Holy Sh*t… Did You See What Just Happened to India’s Currency?!
Nov 25, 2025
India's rupee hit a record low, surprising many as there seemed to be no clear trigger. The central bank's interventions failed to stabilize the currency, sparking discussions on the impact of global factors. Historical trends reveal the rupee often reflects broader eurodollar dynamics. Analysts highlight India's struggling CPI and the looming threat of deflation. Meanwhile, the South Korean won approaches intervention triggers, amid concerns about political stability and dependency on US dollar demand. The rising dollar signals global risk aversion, with implications for housing markets too.
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Rupee's Drop Is A Eurodollar Signal
- Jeff Snider argues India's rupee plunge is a eurodollar signal, not mere speculation.
- The rupee's fall reflects global dollar-driven risk aversion and systemic monetary pressure.
Intervention Drains Local Liquidity
- Snider explains RBI intervention drained rupee liquidity and limited future support.
- That depletion left markets exposed and helps explain why officials were absent during the crash.
Use Currency Canaries As Early Warnings
- Watch currency moves like the rupee as leading macro indicators of global risk-off episodes.
- Use these canaries to anticipate broader eurodollar-driven downturns before mainstream signals lag.