Tech Selloff Spurs Foreign Inflows, Supporting Indian Rupee

According to Jin10, foreign investors have returned to Indian markets after months of sustained outflows, a trend expected to support the rupee. The technology-stock selloff has helped drive inflows into India, Asia’s third-largest economy. The rupee has gained 0.5% so far this week, touching 94.32 intraday on Thursday, its highest level in two weeks, before closing at 94.4750. It had been under pressure for much of the year and relied heavily on central bank intervention for support. This week, oil prices and equity flows, two factors that had long weighed on the rupee, improved and gave it some respite. Global funds had previously favored AI investments, leaving Indian stocks overlooked; as that trade reversed, Indian equities returned to focus.