FPI outflows, Adani group's FPO cancellation sour mood for rupee

The domestic currency closed at 82.18 per US dollar as against 81.93 per dollar on Wednesday

Outflows of overseas investment and withdrawal of Adani Enterprises’ (AEL’s) Rs 20,000-crore follow-on public offer dampened market sentiment, weakening the rupee against the dollar on Thursday.

The domestic currency closed at 82.18 per dollar, against 81.93 on Wednesday. So far in 2023, the rupee has gained 0.7 per cent versus the greenback.

With outflows of foreign portfolio investment continuing unabated in January, the rupee did not manage to gain from a sharp global decline in the dollar after the US Federal Reserve’s (Fed’s) policy statement.

As expected, the Fed raised interest rates by 25 basis points. Market participants, however, interpreted