New Delhi, Dec 23 || In real effective terms, the Indian rupee remained stable in November, as depreciation of the INR in nominal effective terms was offset by higher prices in India compared to its major trading partners, according to the Reserve Bank of India’s (RBI) December Bulletin.
The rupee depreciated against the US dollar in November, pressured by the strengthening of the US dollar, muted foreign portfolio flows, and uncertainty surrounding the India-US trade deal.
“The volatility of INR, as measured by higher prices in the coefficient of variation, moderated in November from a month ago and remained relatively lower that most currencies. In December so far (up to 19), the INR depreciated by 0.8 per cent over its end-November level,” according to the Bulletin.
During 2025-26 so far (up to December 18), net FPI registered outflows, driven by equity segment. FPI flows turned negative in December following inflows in the previous two months.
The uncertainty surrounding India-US trade deal and investors’ caution around high domestic valuations kept net FPI flows to India muted in recent months, said the RBI in its Bulletin.