Mumbai , July 13 The Indian rupee depreciated by about 4 per cent against the dollar last week as foreign funds withdrew Rs 3,265 crore from the stock markets and in the same period, a study has said.
FIIs sold shares worth Rs 3,265 crore between June 5 and July 10 this year and in the same period rupee went down from 46.84 to a dollar to 48.69 a dollar, the study by foreign exchange trading company Alpari India said.
The rupee rose nearly nine per cent against dollar during the April 23 to May 22 period as foreign funds invested about Rs 12,000 crore in the stock market in the same period, the study on correlation between the value of Indian rupee against dollar and the buyingselling activity of FIIs on stock exchanges said.
FIIs purchased shares worth Rs 12,336 crore between April 23 and May 22 which resulted in rupee appreciating from 52.22 to a dollar as of April 23 to 47.19 as on May 22, it said.
Alpari India CEO Pramit Brahmbhatt said the Indian currency markets have shown a strong correlation with the FII movements over the last few months.
The rupee fell by 7 per cent against dollar during February 10 to March 5 as FIIs withdrew Rs 5,000 crore from the stock market."We are sitting on a huge currency risk through FII investments,"he said, given that the minuscule part of FII money results in massive movement in the currency markets.
Source : indopia.in