Growing Inter-Linkages between Markets

EPW Research Foundation Growing Inter-Linkages between Markets There was a sudden revival of FIIs' interest in the stock market and portfolio inflows rose, the rupee which had dipped to the lowest level in early February began to strengthen and as this happened the market players scrambled for counterpart rupee funds to benefit from the available arbitraging opportunity between not only the domestic money market and the foreign exchange market but also between the spot and forward segments of the foreign exchange market.