Indian mutual funds halt new investments in gold fund of funds amid rupee support drive
Major mutual fund firms in India have stopped accepting fresh money into gold fund of funds as the government seeks to curb gold demand and support the weakening rupee.
Several leading mutual fund houses have suspended new inflows into gold fund of funds, a move aligned with recent policy steps to reduce investment demand for gold. The action is part of broader efforts to limit gold imports, which are seen as a pressure on the depreciating Indian rupee. The rupee, among the weakest Asian currencies against the dollar this fiscal year, showed a modest rise after the measures. Officials hope the restriction will help stabilize the currency while the stock market also posted gains.
Why it matters
Stopping new gold fund inflows aims to lower gold imports and help stabilize India's weakening rupee.
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