INSUBCONTINENT EXCLUSIVE:
MUMBAI: The rupee could well reverse its losing streak if the Indian diaspora yet again gets into the rescue act and buys dollar bonds, a
proven instrument in helping stabilise the currency during previous periods of turbulence
import cover to eight months in next two years from nine months now
Between April and August, the rupee lost 8.2 per cent against the dollar, ranking itself as the worst performer in Asia after the
flows are slowing in the face of a rising oil import bill
All such bond sales helped stabilise the rupee
If the RBI gives its green signal, it will be the fourth series of such an issue
Foreign portfolio investors have net sold Rs 88,082 crore worth of domestic debt securities and equites this year, show data from National
Securities Depository.
BofAML expects NRI bond sales to begin if the rupee remains above 70 to the dollar, with no signs of revival in FPI
RBI-backed NRI bonds are Indian bank forex deposits raised from non-resident Indians at attractive rates across two-three- or five-year
maturities.
RBI supplies dollars to issuing banks, which would repay the dollars after a stipulated period.
