As on June end, NRIs held $71.07 billion in bank deposits, marginally lower than $71.69 billion in May. The sharp volatility in the rupee may have prompted NRIs to refrain from putting money into bank deposits. The rupee weakened 2.4% during June and has since then fallen to fresh all-time lows of 61.81/$.
Expectations that the rupee could weaken more may also prompt NRIs from bringing in dollars and investing in bank deposits.
Finance minister P Chidambaram has said that the government wouldlook atissuingquasi-sovereign bonds through state ownedenterprisesto bring in dollars into the country and prop up the rupee.