Daijiworld Media Network- Mumbai
Mumbai, Mar 4: Despite continued outflows from Foreign Portfolio Investors (FPIs), the Indian Rupee remained relatively stable, thanks to Reserve Bank of India (RBI) interventions and a benign US dollar, according to a recent report by Bank of Baroda.
While FPI outflows typically exert downward pressure on the Rupee, two key factors prevented excessive depreciation:
1. Softening US Dollar – The dollar index has been relatively subdued, reducing pressure on emerging market currencies.
2. RBI Intervention – The central bank’s strategic moves in the forex market helped absorb volatility and prevent sharp declines.
Foreign investors have been pulling funds from Indian markets, especially in the equity segment, amid global economic uncertainties and shifting investment dynamics. However, the impact on the Rupee has been contained, with limited depreciation observed.
Experts believe that continued RBI vigilance, along with a stable global dollar environment, could keep the Rupee in check despite external pressures. The Bank of Baroda report suggests that the currency may trade in a narrow range unless fresh global shocks emerge.
With the RBI actively managing forex reserves and the global economic outlook uncertain, the Rupee’s trajectory remains cautious but under control.
