The Rupee has closed at 66.12 on Tuesday, the highest exchange rate ever.
FIIs are starting to pull out. Data till yesterday (SEBI) shows that FII pullouts are now around 11,000 cr. for the month, a lower number than the last month (even through we have four days to go)
But today’s preliminary data from the NSE shows that FIIs sold more than 1,000 cr. in equities just today.
We don’t need FIIs to leave for the dollar to fall – even a minor exit can now cause serious problems with exchange rates, and I’ve noted this over and over again. Even minor flow reversals can cause damage.
I believe there is a lot more to come. The blood is not yet on the streets, even though some people are bleeding.