Goldman Sachs: Rupee's Worst Decline Over, India Sees $2B FII Inflows Post-US Deal

• Goldman Sachs states the peak underperformance of the rupee is behind us, with currency moves not deterring foreign investor flows.
• India has attracted over $2 billion in FII inflows since the US trade deal, recovering from $30 billion in selling since September 2024.
• Rupee weakness was previously due to overvaluation, weak equity flows, rising gold imports, and trade uncertainty.
• Client interest, especially from Europe and the US, has significantly increased post-trade deal, viewing it as a positive for Indian equities.
• Improving export prospects, lower tariffs, and cheaper Russian oil imports are expected to boost India's external balance.