Rupee is up for a sixth straight day, trading at 83.05 due to expectations of capital inflow

Rupee is up for a sixth straight day, trading at 83.05 due to expectations of capital inflow

Rupee is up for a sixth straight day, trading at 83.05 due to expectations of capital inflow

It is anticipated that adding India to the Bloomberg Global Aggregate Index would result in an increase in capital inflows of $15–20 billion.

After Saudi Arabia announced a sharp price reduction of almost 2%, which increased demand globally, Brent oil dropped to $76.34 a barrel.

For the sixth straight day, the rupee began higher versus the dollar, mirroring increases in Asian markets and currencies. Sentiment was further enhanced by ongoing foreign inflows into debt and stock as well as a decline in crude oil.

The native currency was up 0.1% from its previous closing of 83.14 to 83.05 per dollar at 9:10 a.m.

As of January 2024, foreign capital has poured around $800 million into the debt and equity markets. The prospect of massive foreign inflows into the debt market, sparked by predictions that Indian government bonds would be included in the Bloomberg index in 2024, also contributed to the rupee's increase.

joining the JPMorgan government bond index, which is anticipated to result in inflows into the nation of roughly $23 billion starting in July 2024; analysts predict that new indications regarding the possibility of India's inclusion in the Bloomberg Global Aggregate index will result in an additional $15–20 billion in inflows, with India's weighting being between 0.6% and 0.8%.

The plan calls for the gradual introduction of Government of India bonds over a period of five months, beginning in September 2024, with a monthly 20% rise in the full-market value of bonds classified as fully accessible routes (FARs). Under such circumstances, January 2025 will mark the completion of this procedure.

With Saudi Arabia announcing a sharp 2 percent reduction in global demand, Brent oil dropped to $76.34 a barrel, which is positive news for India. According to specialists, India has recently begun producing new oil in the Krishna Godavari basin.

The value of Asian currencies was rising. Currently, traders are awaiting US PPI and CPI statistics. The South Korean won was up 0.32 percent, the Malaysian ringgit as well as Thai baht were up 0.19 percent, the Japanese yen had been up 0.47 percent, as well as the Indonesian rupiah was up 0.08 percent.

The US currency's strength in relation to other major currencies is gauged by the dollar index, which was trading at 102.13 today, down 0.08 percent through the previous finish of 102.209.