"Victory of Trump on similar grounds as brexit that is anti-immigration will create more trade protectionist regime that is expected to discourage immigration to US. Fed is also likely to increase rates in Dec.
USD is already down against major currencies but for India, this could mean flight of capital from India from debt market and hence a dearer USD. We expect USD to go past 67 to 67.20 - 67.30 range tomorrow and in near term from current 66.87"
"INR 500 / 1000 demonetization will have major impact on travel industry - almost similar to real estate or the wedding market. Forex travel spends can be significant and use of cash in travel related business is rampant. Although RBI limits cash payment for purchase of forex to Rs. 50K only, but this limit is per person. For instance, four members in a family can buy forex against cash for total Rs. 2 lacs! Apart from that there is no credible check on if these four people can be stopped from going to four different money changers and use Rs. 2 lacs cash for forex four times over.
With demonetization, this should change dramatically and while it will be a loss to local money changers who deal in cash for large numbers of transactions, it is major gain for online forex marketplace companies like BookMyForex that have introduced online forex and have been promoting plastic money (forex travel cards) against online or electronic payments.
Rough estimate of forex against cash is at least half official outbound retail forex market of USD 15 billion and hence impact from demonetization would be extremely significant. The demonetization will also impact private overseas remittance (money transfer) market and we expect Banks to gain from this move."
About BookMyForex
Launched in October 2012 in Gurgaon, BookMyForex was incepted with a view to eliminate the chronic issues that the currency exchange market in India has been plagued with. The USP of BookMyForex is that it compares exchange rates and service quality metrics across hundreds of banks and exchange companies and connects the customer with the most ideal forex vendor in real time. With over 100,000 customers mainly from metro cities, BookMyForex is now working towards increasing it’s market share in major cities while simultaneously moving into tier II and III geographies that are known to be big forex hubs.