Jio IPO Help Rupee Recover Against Dollar. (AI Generated Image)
\n\nThe Indian rupee staged a sharp recovery against the US dollar, moving from heavily oversold levels to overbought territory, as dollar inflows linked to Reliance Industries' Jio Platforms initial public offering (IPO) helped ease pressure on the domestic currency.
\n\nThe rupee closed at Rs 94.46 against the US dollar on Wednesday, October 21, gaining 46 paise from its previous close.
\n\nFurther on Thursday, the Day 2 of the IPO-linked inflows helped the rupee gain to 94.35 per dollar, from its previous close at 94.46, despite higher oil prices.
\n\nThe currency is now on course for an eight-day streak of gains, having recovered from near record-low levels hit earlier in the month.
\n\nStrong foreign portfolio flows drawn by the $3.2 billion record Jio IPO, have helped extend its rebound, with the public issue being fully subscribed within hours of opening for bids.
\n\nOverseas investors need rupees to pay for shares in the Indian IPO. The issue was valued at approximately $3.2 billion, equivalent to about Rs 30,213 crore.
\n\nSome investors use a sell/buy FX swap. They sell dollars for rupees now and agree to reverse the transaction later, usually within a…
Original source: https://www.timesnownews.com/business-economy
