InvestorQ : Why did the rupee appreciate so sharply on Monday? Was there some major dollar inflows?
diksha shah made post

Why did the rupee appreciate so sharply on Monday? Was there some major dollar inflows?

Answer
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Rutuja Nigam answered.
1 month ago


It was a rare day when the rupee showed a smart appreciation but the momentum was building up for some time now. The reason the rupee appreciated by 52 paisa to Rs.74.32/$ on 25 August had less to do with dollar flows and more about global sentiments.

This appreciation in rupee in a single day took the rupee to a 5-month high versus the dollar. NSDL reported that foreign portfolio investors or FPIs had pumped in Rs.42,000 crore into India in the first 3 weeks of the month and this marks a trend shift over last few months.

Meanwhile, banks have confirmed that NRI deposit and remittance flows were once again picking up steam after a brief lull due to the COVID pandemic and the weak oil prices, which impacted remittance flows from the lucrative Middle East economies.

Also, the likes of Foxconn and Samsung promise huge FDI flows in the coming years, adding heft to the rupee. It also looked on Monday like the RBI was not too keen to intervene and prevent the rupee from strengthening as is its normal proclivity on such days.




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Dinesh C Nagpal answered.
1 month ago


The US$ sell side stops got triggered since RBI led PSU Banks withdrew their supporting bids around 74.70