Rupee overvaluation in real terms has now reached the highest level since the start of the financial year in 2004
Against a basket of 36 currencies on a trade weighted basis, the rupee real effective exchange rate index exceeds 120.
On the other hand, the Indian stock market on a rupee basis by the measure I follow - totoal market capitalisation of the stock market to GNP - is still not in bubble territory, but it is getting there.
2018 could well be a crucial year for investors: we may see a convergence of both a bubble in the fx market and the stock market.
