Rupee Opens Flat On RBI Intervention Amid FII Outflows From Stocks, Bonds
Rupee opened little changed at Rs 84.05 against the US dollar, according to Bloomberg data. The currency closed at Rs 84.04 against the greenback on Tuesday.
The Indian rupee opened little changed on Wednesday as relentless intervention by the Reserve Bank of India offset the impact from consistent selling of stocks by foreign investors. Inflows into the slew of IPOs including Hyundai Motor India Ltd. too supported the rupee.
The rupee opened little changed at Rs 84.05 against the US dollar, according to Bloomberg data. The currency closed at Rs 84.04 against the greenback on Tuesday.
"Rupee is expected to remain flat this morning as we watch the RBI and the IPO flow of funds," according to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP
Foreign investors sold Indian stocks for the 12th consecutive day due to the revival of Chinese stocks and concerns about valuation. In the last 11 sessions, FIIs have offloaded domestic stocks worth over Rs 74,800 crore, according to provisional data from NSE.
Additionally, following their addition to JPMorgan Chase & Co.'s emerging-market bond index, Indian sovereign bonds eligible for global debt inclusion experienced their first weekly outflow.
This significant outflow has pushed the RBI to allow the rupee to reach record levels, according to Amit Pabari, managing director, CR Forex Advisors. "Adding to the pressure is the strengthening dollar index, which has surged to a two-month high of 103.25."
Crude oil prices advanced on Wednesday after the possibility of targeting nuclear facilities was back as Israel said it would decide on its own on how to attack Iran.
Brent crude was trading 0.28% higher at $74.46 a barrel as of 9:54 a.m. IST. West Texas Intermediate was up 0.35% at $0.25.
