Forex Update: $5.24 billion less than India’s reserve amount of $617.23 billion
According to the most recent RBI statistics, India’s foreign exchange reserves decreased by $5.24 billion to $617.23 billion for the week that ended on February 9. The FX kitty at the conclusion of the week on February 2 was $622.5 billion.
When kitty reached USD 645 billion in October 2021, the reserves hit their high. The central bank’s sale of dollars to support the rupee in the face of pressure stemming mostly from worldwide events since last year negatively impacted the reserves. The rupee has hence far this fiscal year been the finest Asian currency.
According to RBI statistics, the foreign exchange reserves have grown by $50.28 billion during the current fiscal year 2023–24.
The high loss in foreign currency assets, which make up the single greatest portion of the reserves, was the cause of the substantial reduction in the total reserves for the week that concluded on February 9.
According to the most recent statistics, foreign currency assets, which make up the majority of the reserves, decreased by $4.07 billion to $546.52 billion during the course of the reviewed week.
The impact of non-US units like the euro, pound, and yen held in the foreign exchange reserves appreciating or depreciating is included in the foreign currency assets, expressed in terms of dollars.
During the reporting week, the nation’s reserve position with the IMF dropped by $28 million to $48.32 billion.
The Rupee
The Indian rupee is predicted to fluctuate between 82.80 and 83.10 in the upcoming week due to inflows, and the RBI is likely purchasing dollars to maintain reserves and prevent the rupee from appreciating significantly, according to Anil Kumar Bhansali, executive director of Finrex Treasury Advisors LLP and head of treasury.
“Importers should purchase the dips around 82.80, while exporters should continue to sell any upswings over 83.00. According to him, exporters may sell for more than three months, while importers should hedge for the near future.
