It seems that dollar is bottoming around these level, may be, there is perceived notion that Fed will stop cutting rates from now on. This could lead to unwinding of the speculative trade in the commodities, which has started; case in point, we saw crude falling around 10% from $120/bbl and gold around 20% from level of $1033/ounce.

India will benefit if commodity prices cool off from here as we are net importers and could see some profit booking in countries like Brazil, Russia. Remeber, Brazil is trading at a new all-time high due to huge surge seen in commodities and S&P upgrade the country to investment grade credit rating. Commodities contribute nearly 50-70% in Brazil, Russia against 25% in India.

	Dollar Reaction%	Bottom-out level
INR	0.0185	39.925
Euro	0.0333	0.6277
Yen	0.084	97

Dates	Fed Rate	Fed rate cut	Dollar Reaction Vs Euro	Dow Jones-AIG Commodity Index change
18-Sep	4.75	-0.5	-0.0269	0.0831
31-Oct	4.5	-0.25	-0.0374	0.048
11-Dec	4.25	-0.25	-0.0179	-0.0271
22-Jan	3.5	-0.75	0.0104	0.0379
30-Jan	3	-0.5	-0.0171	0.0313
18-Mar	2.25	-0.75	-0.0632	0.0998
30-Apr	2	-0.25	0.0104	-0.0078
Current			0.0085	-0.0021

But, unwinding in commodities is witnessing perceived demand from the US economy as it stabilizes.