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Macronomics: Forex Data Shows Heavy RBI Buying, FPI Inflows and Good Times for Yen Borrowers

A look at the proceedings in forex in the last month tell us a story:

• While the rupee was flat against the dollar, it appreciated vis-a-vis the yen, pound and euro.

• Foreign Investor interest in Indian markets waned and then returned.

• Biggest ever FPI investments come to India in 2014.

• RBI buys a big chunk of inflows for reserves; is it a precursor . . .

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