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Rupee: Fiscal gap, fund outflows may put pressure on rupee in H2

Synopsis Although India’s foreign exchange reserves are at a record high, a sudden reversal in fund flows from asset managers and private equity funds could put pressure on the local currency. TOI.in India recorded a trade deficit of $9.4 billion in June, 2021, down from a small surplus of $740 million in the corresponding period of last year. Related MUMBAI: Stability of the Indian rupee could be tested in the latter half of the year as rising imports, particularly of transport fuel, begin to stretch the fiscal gap in an economy free from mobility curbs while rich valuations of local growth assets serve to moderate the flow of funds from abroad.

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