RBI intervention, FDI inflows and foreign currency borrowings have helped stabilise the rupee
Crude oil prices have risen by nearly 80 percent in FY22, but in spite of that, the USD-INR rate and Indian rupee in general have been quite stable, barring the last couple of month’s underperformance. The heat map below shows that. Since October 2021, foreign portfolio investors (FPIs) turned net sellers with nearly $ 20 billion in sales yet the USDINR has been resilient. There are a few reasons: RBI intervention: We estimate RBI may have sold between $ 10-12 billion over this…
