Usd & Inr Movement

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USD-INR Movement/FII Inflow(Outflow) movement during the month of September 2011

% Change in the month of September|
USD| Euro| Crude| Nifty|
-6.5992| -1.89321| -2.442| -1.91964|
Major points to be Noted-
1. Depreciation of INR vs USD 6.60%
2. Net Outflow of FII-Rs. 3,088/- Crore (approx.USD 700 million) 3. Depreciation of INR vs Euro 1.89%
Reasons for variations in USD-INR
INR has depreciated at very fast pace of 6.60% during the month of September majorly on account of worries of European debt which increased the demand for USD as safe heaven. As demand for safe heaven increased, money started flowing out of all the risk assets and corroborated by the outflow of Rs.3088 crore from Equity. This can also be seen that even though the USD has appreciated by 6.60% , Euro has appreciated only by 1.89% . Even though money has moved from risk assets, there has not been substantial fall in the crude prices which is due to expected pressure on supply side due to turbulence in Libya. USD-INR Movement/FII Inflow (Outflow) movement during July-September 2011

% Change in the month of September|
USD| Euro| Crude| Nifty|
-9.73366| -2.8456| -5.7783| -12.1544|

Major points to be Noted-
1. Depreciation of INR vs USD 9.73%
2. Net Outflow of FII-Rs. 10,565/- Crore (approx.USD 2.2 billion) 3. Depreciation of INR vs Euro 2.85%
Reasons for variations in USD-INR
INR has depreciated by 9.73% during the quarter July- September. In the month of july, Dollar had touched the low of 43.85 on account of deadlock in Democrats and Republicans which brought America to near default and caused loss of AAA rating of America. However, after the deal was struck, market turned their attention to Europe which struggled to resolve the debt crisis. This boosted the safer heaven currency demand and Dollar and Yen strengthened while Euro depreciated against all the major currency. This forced Swiss bank to peg Swiss Franc to euro at 1.20 to...
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