We have a three-year low on the Euro. Three year low. This is not just dollar strength – it’s also serious rupee strength in comparison. Euro trades at less than Rs. 66!

The rupee has appreciated against the pound, the Euro and the Yen. You would say, so what? But given that oil and gold prices are falling (oil is traded largely in dollars, so is gold), the main thing that affects is our trade currencies of actual goods and services, and much of that is in these other currencies.

Europe is our biggest trading partner – we exported more than $50 billion to it last year, more than to any other region. This euro drop will change things, and in the first nine months of the year it’s showing, with Euro area exports at $37 billion, falling to second place (West Asia is at $38 billion).

Watch out for the implications – the lower Euro can damage our exports. Let’s just hope some people have recently borrowed in Euros – paying back is that much easier!

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