FIIs redeem $4.6 billion from debt in 1 month

India Infoline News Service | Mumbai |

FIIs found the rupee levels to be unattractive and preferred shifting of the US funds

Foreign institutional investors (FIIs) have offloaded over $4.6 billion between May 22 and June 18, according to SEBI data.

Till May 22, total net FII inflow into the debt segment for 2013 was $5.6 billion, which declined to $980 million on June 18. So, the total net FII outflow from the debt segment in less than a month was about $4.6 billion.

The market participants were of the opinion that potential slowdown in quantitative easing (QE3), through which the US government invested huge money into the financial system, created uncertainty among investors. If the speed of QE3 is slowed down, there could be more outflows by FIIs.

FIIs also found the rupee levels to be unattractive and preferred shifting of the US funds.

During the period under the review, the rupee had depreciated 4% during the same period, closing at 57.87 to a dollar on Monday. Since January 1, rupee depreciated almost 7.75% to 58.78 today from 54.55.

 

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