Breaking News :
To Whom Does This Land Belong?    Kashmiri Shawl Seller Assaulted, Robbed in Punjab—Third Attack in 45 Days    Jamia Students Rally Against Crackdown on Campus Activism    AI Summit Divided: India Pushes for Inclusive Rules as US, UK Reject Paris Communique    Bangladesh Witnesses Wave of Violent Attacks Against Monuments of Liberation War    CPI Raises Alarm Over Chhattisgarh Encounters, Demands Inquiry    Govt’s 15-Point Plan Focuses on Education, Employment & Social Welfare for Minorities: Rijiju    Unchecked and Unregulated: How Illegal Constructions Soar in Kolkata Under TMC’s Watch    India’s Got Latent Row: Assam Police Book Ranveer Allahbadia, Samay Raina and Others    SC Reserves Verdict on WBSSC Job Scam Case, Questions Data Authenticity    Why Has Manipur Governor Not Convened Assembly Session? Congress Questions Delay    Far-Right Leaders Gather in Madrid to 'Make Europe Great Again'    Bipartisanism Wins in Ecuador: Noboa And González Head to Presidential Run-Off    Rajasthan: BJP Pulls Up Minister Kirodi Lal Meena Over Phone-Tapping Remark    Modi’s France Visit: Meets ‘Friend’ Macron & US VP JD Vance    Parrhesia as Political Resistance: The Bishop That Spoke Truth to Power    FIR Filed Over ‘Beef Biryani’ Notice at AMU, University Cites Typing Error    Modi Govt’s ‘U-Turn’ on CLND Act a Bid to Appease Foreign Nuclear Firms: Congress    Indian Rupee Plunges to All-Time Low of 87.95 Per Dollar in Early Trade    Delhi Elections: The End of a Myth And the Magnification of a Tragedy   
Economy

FDI Slumps, RBI Sells Record $20.2 Billion to Contain Rupee Fluctuations

The decline reflects increased repatriation by foreign investors and higher overseas investments by Indian firms.

FDI Slumps, RBI Sells Record $20.2 Billion to Contain Rupee Fluctuations

Representative image (File photo).

The Reserve Bank of India (RBI) has highlighted a decline in foreign direct investment (FDI) and record sales in the foreign exchange market to manage rupee volatility, according to its latest monthly bulletin.

Net FDI into India dropped significantly to $0.5 billion during April–November 2024, compared to $8.5 billion in the same period in 2023, as reported by Business Standard

The decline reflects increased repatriation by foreign investors and higher overseas investments by Indian firms.

While gross inward FDI during the period rose to $55.6 billion from $47.2 billion a year earlier, disinvestment by direct investors surged to $39.6 billion, up from $29.7 billion in April–November 2023.

Outward FDI also saw a sharp rise, climbing to $15.5 billion from $8.9 billion in the corresponding period last year.

In a related development, foreign inflows into Indian government bonds over the next two-and-a-half months are expected to fall short of projections, Reuters had earlier reported.

Investors attribute this to the rupee repeatedly hitting all-time lows and US Treasury yields remaining at multi-month highs.

Meanwhile, the RBI reported record interventions in the foreign exchange market, selling $20.2 billion in November 2024 to stabilize the rupee against the dollar, reported Business Standard

This pushed its net short position in the forward market to $58.9 billion by the end of November, up from $49.18 billion at the end of October.

These measures underscore the central bank’s efforts to address challenges posed by currency volatility and shifting global financial conditions.

Comments (0)

Leave a Comment

   Can't Read ? Click    Refresh