Capital flow and Rupee Depreciation

Whether you like him or hate him ….. Trump tax cuts and policy on capital repatriation is finally working. The chart below shows the cash repatriation to US by corporates and any liquidity injection is actually good for US at the expense of the repatriating country.

On a seperate note the below chart from International Institute of Finance (IIF) shows the overvaluation of Rupee.

Combine the above two charts then the conclusion is clear. Money is moving back to US and Rupee is vulnerable to the capital outflow more than other countries because it is massively overvalued.