Mumbai: The Indian rupee may weaken as global funds start to hit buying limits for the nation’s debt and valuations for equities look expensive, according to HSBC Holdings Plc. The withdrawals come as hawkish comments from major central banks cloud the outlook for flows to emerging markets. It rallied 5.2% in the six months ended 30 June, and was at 64.5925 per dollar in Mumbai on Tuesday. Overseas investors sold a net $269.1 million of Indian stocks this month through 7 July, paring inflows for 2017 to $8.2 billion. Borrowing in dollars to purchase rupee assets has earned 7.9% in 2017, the highest carry returns in Asia, data compiled by Bloomberg show.

Source: Mint July 12, 2017 03:22 UTC