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Rupee Stronger Due To Stronger Inflows: Indian Currency At A Six-Month High As Foreign Investors Anticipate Modi 2.0
Swarajya Staff
Mar 16, 2019, 12:26 PM | Updated 12:26 PM IST
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A steady inflow in both debt and equity segments has helped the rupee, which has been steadily appreciating in recent days, to hit a six-month high against the dollar, reports The Hindu.
In the fifth straight week, the rupee closed on Friday (15 March) at 69.10 against the dollar, its highest level since 10 August 2018.
After opening at 69.34 against the dollar compared to Thursday’s 69.35, the rupee went on to touch a day’s high of 69.03 before closing at 69.10, up about 26 paise or 0.37 per cent.
According to provisional figures, foreign portfolio investors (FPIs) were net buyers in equities at Rs 4,323 crore on 15 March.
The Hindu quoted data from the National Securities Depository Ltd. (NSDL) as saying that FPIs have been net buyers in equities at nearly Rs 18,000 crore in the current month, following net purchases of Rs 17,220 crore in the previous month.
The reports suggest that after India's air strikes at Balakot, foreign investors are now anticipating the return of the Narendra Modi-led NDA government at the Centre.
Also, the RBI's decision for a currency swap to infuse rupee liquidity is expected to bring down hedging cost, prompting inflows in the short end of the corporate debt. RBI plans to inject $5 billion cash via a 3-year dollar-rupee swap auction on 26 March.
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