The forecasts on the Indian rupee a few months ago, and its current state, probably reinforce the Nobel Laureate’s theory.
The rupee has fallen 5.3% since May while the worst hit among emerging markets was the South African rand, which lost 9%.
Indian bonds, which attracted record overseas funds because of their high yields, are losing sheen, as a rise in yields in the US makes it profitable to buy US bonds.
FIIs have sold Rs 11,300 cr worth of bonds in India for ten trading days beginning May 22, the first time since they were allowed to buy fixed income securities in 1998.
Indian companies have raised $11.16 billion this calendar year in overseas bond sales, higher than the $10.4 billion raised in full year 2012 .
Indian companies have raised $11.16 billion this calendar in overseas bond sales, higher than the $10.4billion raised the whole of 2012 as companies rushed to take advantage of low global interest rates.
A broad-based dollar rally across markets, arbitrage between the onshore and unregulated offshore markets pushed the rupee to a ten-month intraday low on May 29.
Anil Ambani-promoted Reliance Infrastructure plans to raise Rs300 crore through two tranches of bonds of five and seven years’ maturity.
The RPG group will take up the case of the cyber fraud in which the company’s account was hacked into and Rs 2.4 crore siphoned off on May 11 with Yes Bank on Monday.
Larsen & Toubro is planning to raise Rs 1 billion in 10-year inflation-linked bonds at 1.65 per cent over wholesale price inflation, a source said.
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