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Rupee Pinned Near Lows as Outflows Test South Asia FX Walls MALE / MUMBAI BUREAU — The Indian rupee opened softer against the dollar again on Wednesday, sitting close to its recent trough as foreign funds kept pulling capital out of Mumbai's equity and debt counters.
For currency desks across the northern Indian Ocean — from the State Bank of India treasury floor to the Maldives Monetary Authority's reserves team in Malé — the message is the same: dollar demand is outrunning supply, and the squeeze is starting to ripple beyond Dalal Street.
National Securities Depository Limited data show foreign portfolio investors have offloaded more than $1.5 billion in Indian assets so far this month, piling onto a quarter that was already heavy with redemptions.
The Reserve Bank of India has been quietly using state-run banks to soak up the worst of the volatility, but with the dollar index sticky above 104 and US Treasury yields stubborn, the central bank is rationing its firepower rather than picking a defended line.
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