Branch2 Intelligence
Rise in dollar inflows may put additional pressure on Gold prices
Key takeaway
Rising NRI FCNR(B) deposits are boosting dollar inflows, strengthening the rupee and pressuring domestic gold prices downward.
- Step 11st-order: Surge in NRI FCNR(B) deposits increases dollar inflows into India.
- Step 22nd-order: Dollar inflows strengthen the Indian rupee against the USD.
- Step 33rd-order: A stronger rupee reduces the landed cost of gold imports, putting downward pressure on domestic gold prices.
Source: IN:The Hindu BusinessLine
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