# Why a torrent of foreign funds threatens India's tight grip on the rupee | Banking News - Business Standard

> Foreign funds have poured around $50 billion into Indian stocks and companies this year, flooding the banking system with rupee liquidity. Traders and fund managers increasingly expect the Reserve Bank of India to consider changes, such as loosening its grip on the rupee or curtailing bond purchases.

- Date: 2020-12-15 · published 2020-12-15T12:00:00.000Z
- Category: macro · region India · magnitude low
- Page: https://feedsoft.ai/events/49930-why-a-torrent-of-foreign-funds-threatens-india-s-tight-grip-on-the-rupee
- Commodities: [Indian Rupee (INR per USD)](https://feedsoft.ai/c/USDINR.md)

## Why it matters

A possible shift in RBI intervention could let the rupee strengthen, which would lower USD/INR and affect the cost of dollar-priced feed imports into India.

## Read by commodity

- USDINR: bearish ▼

## Sources

- business-standard.com: https://www.business-standard.com/article/finance/why-a-torrent-of-foreign-funds-threatens-india-s-tight-grip-on-the-rupee-120121500108_1.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.