Weak dollar stops FII outflows from India, spurs an inrush of $1 billion

$1 bn returns after foreign investors pulled out $10 bn between November and December

Huge outflows from equity and debt seen during the fag end of 2016 have receded, thanks to the dollar going down and the rupee fuelling up foreign-investor appetite. Between November and December, foreign investors had pulled out $10 billion, on fears of demonetisation and hopes of better prospects in the US under a new dispensation. Although foreign institutional investors (FIIs) still haven't staged a full-blown comeback, markets are relieved the sell-off has ended. 

The Dollar Index, which signals the price of dollar against a basket of currencies, fell three per cent in January and recovered slightly this month. 

Adrian Mowat,