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    • Join Date: Jan 2007
    • Posts: 1,740
    #1

    head for the door, augment supplies, provided a cushion

    Checking inflation apart, the RBI is not too happy over the prospect of capital flows into the economy declining. Foreign institutional investors (FIIs) have begun to head for the door and have pulled out $9 billion from the domestic stock market so far this year.
    But the central bank, flush with foreign reserves, has been selling dollars to augment supplies in the market. This is precisely what has provided a cushion for the rupee since Tuesday.




    Please explain the emboldened parts to me.


    • Join Date: Oct 2006
    • Posts: 19,434
    #2

    Re: head for the door, augment supplies, provided a cushion

    Foreign institutional investors (FIIs) have begun to head for the door >> The investors are looking for more secure investments - they are looking for a way out of a difficult situation.

    has been selling dollars to augment supplies in the market >> to build up the availability of rupees in the market.

    This is precisely what has provided a cushion for the rupee >> has supported it.

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