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Rising dollar: FPI investment set to turn negative in September

Experts say EM market equities, currencies may remain weak unless there is positive news

FPI, FDI, investment, funds
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Experts said the rising dollar is a sign that investors have turned risk-averse

Sundar Sethuraman Thiruvananthapuram
The spike in the dollar has taken some zing out of emerging markets (EMs) in September. The dollar index, a gauge for the performance of the greenback against major global currencies, is hovering around its two-month low amid uncertainty over further stimulus measures in the US and rising Covid-19 cases worldwide. 

While the domestic equity markets have seen a sharp rebound in the past two trading sessions, analysts say the dollar’s ascent could be a cause for worry as it could further accelerate foreign portfolio investor (FPI) outflows. In the past six trading sessions, the overseas investor selling has topped the

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First Published: Sep 29 2020 | 1:04 AM IST

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