How to play a short, sharp rise in the Indian rupee

India's rupee is down 18% against the US dollar since March. But smart spread betters might want to position themselves for a short-term bounce, says Tim Bennett. Here’s how.

It's been a dire few days for the Indian economy. Domestic factory output has contracted for the first time in more than two years it fell by 5.1% from a year earlier in October. There is also widespread concern about the Indian government's ability to implement economic reform to attract more foreign capital.

And investors have plenty of other reasons to be nervous about India domestic inflation is still barely under control, growth is slowing and the continent is exposed to the unfolding euro crisis. No wonder the rupee is down 18% against the US dollar since March.

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Tim graduated with a history degree from Cambridge University in 1989 and, after a year of travelling, joined the financial services firm Ernst and Young in 1990, qualifying as a chartered accountant in 1994.

He then moved into financial markets training, designing and running a variety of courses at graduate level and beyond for a range of organisations including the Securities and Investment Institute and UBS. He joined MoneyWeek in 2007.