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FPI debt inflows hinge on trade deal, rupee stability

Financial Express Pune

|

December 18, 2025

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- CHRISTINA TITUS

FOREIGN INVESTORS BEGAN withdrawing from government securities in December, ending five straight months of inflows.

The expectation of no more rate cuts, elevated global yields, and a declining rupee are the factors which contributed to the outflows, said market participants. A clarity on the trade deal and a stable rupee will only revive foreign inflows into government securities going ahead, they said.

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