The India rupee continued to hold above the 84 mark and weakened during Thursday’s opening as foreign investors continued to offload domestic stocks.
The rupee weakened by 2 paise to open at 84.02 against the US dollar, according to Bloomberg. The currency closed at 84.00 on Wednesday.
Foreign investors sold Indian stocks for the 13th consecutive day amid rising concerns about a slowing economy and the valuation the stocks are quoted at.
In the last 12 sessions, foreign institutional investors have offloaded domestic stocks worth over Rs 78,300 crore, according to provisional data from the National Stock Exchange.
Additionally, following their addition to JPMorgan Chase & Co.’s emerging-market bond index, Indian sovereign bonds eligible for global debt inclusion experienced their first weekly outflow during the week ended Oct. 11.
India’s trade deficit was reported at $20.780 billion in September, falling below the expected $24.637 billion. The merchandise exports in September were recorded at $34.58 billion, while imports reached $55.36 billion.
The shirking on of India’s trade deficit will provide the rupee with a temporary cushion, according to Amit Pabari, managing director, CR Forex Advisors. Lower crude prices are a relief, as they reduce the import bill—one of the major drags on the rupee.
