RBI FCNR Rupee Gold Pressure
Dollar inflows through RBI's FCNR(B) deposit scheme will strengthen the rupee, which puts downward pressure on domestic gold prices
Too little corroboration in the last 3 days to call a trend (8 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"However, a stronger Indian rupee added pressure on domestic precious metal prices, said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities."
"Traders said a stronger rupee reduced the landed cost of imported bullion in the domestic market, while weak global trends and caution ahead of the US Federal Reserve's policy decision kept investors' sentiment subdued."
"Traders said a stronger rupee reduced the landed cost of imported bullion in the domestic market, while weak global trends and caution ahead of the US Federal Reserve's policy decision kept investors' sentiment subdued."
"Traders said a stronger rupee reduced the landed cost of imported bullion in the domestic market, while weak global trends and caution ahead of the US Federal Reserve's policy decision kept investors' sentiment subdued."
"Traders said a stronger rupee reduced the landed cost of imported bullion in the domestic market, while weak global trends and caution ahead of the US Federal Reserve's policy decision kept investors' sentiment subdued."
"Gold prices extended their weakness after the rupee appreciated by 48 paise against the US dollar, which weighed on domestic bullion"
"expectations of sustained dollar inflows have improved sentiment towards the rupee, which in turn could keep domestic gold prices under pressure even if international bullion prices remain stable. Going forward, market expectations of sustained FCNR(B) inflows and any resultant appreciation in the rupee could act as a cap on domestic gold prices."
"expectations of substantial dollar inflows through the RBI's FCNR(B) deposit scheme have further dampened sentiment by raising prospects of a stronger rupee. Since the announcement of the RBI measures, the rupee has appreciated from around ₹97 to ₹94.6 against the dollar, while domestic gold prices have corrected by nearly 8-9 per cent from their June peak."