Foreign investors have pulled out a staggering over Rs. 62,000 crore ($10.5 billion) from the Indian capital market in the past two months amid concerns about the depreciating rupee.
According to the market expert the weakness in the Indian currency was instrumental in overseas investors exiting the debt markets as the rising cost of hedging a volatile rupee hurts the yield differential the FIIs work with.
eAnswers Team
Foreign investors have pulled out a staggering over Rs. 62,000 crore ($10.5 billion) from the Indian capital market in the past two months amid concerns about the depreciating rupee.
According to the market expert the weakness in the Indian currency was instrumental in overseas investors exiting the debt markets as the rising cost of hedging a volatile rupee hurts the yield differential the FIIs work with.