This movement represents the strongest single-day rupee gain in three months, coinciding with substantial FII inflows totaling $850 million into Indian equity markets during the first week of March.
Foreign Institutional Investors (FIIs) have significantly increased their Indian market exposure, while the Reserve Bank of India (RBI) actively intervenes to stabilize the rupee ... Why doesn’t the USD/INR rate fall when FIIs buy Indian assets?.
D-Street may take cues from global trade tensions after the US Supreme Court struck down key Trump tariffs, with markets now tracking fresh universal tariffs, FII flows and macro data in a volatile... .
Foreign Institutional Investors (FIIs) executed substantial selling in Indian equity markets, consequently creating sustained demand for US dollars... Historical data indicates similar patterns during periods of sustained FII outflows.
This selling pressure directly impacts currency markets as FIIs convert rupee proceeds back to dollars and other global currencies ... The Reserve Bank of India’s intervention patterns have also affected FII positioning strategies in recent months.
This sharp upward move reflects the compounding strain from soaring global crude oil prices and persistent Foreign Institutional Investor (FII) outflows from Indian equity markets ... Persistent FII Selling Weighs on Sentiment ... FactorImpact on FII Flows.
Consequently, the resulting dollar demand from FII repatriation directly pressures the rupee exchange rate. Historical analysis shows that FII flows typically correlate strongly with rupee performance over medium-term horizons.