Forex Update: $591 million more than India’s reserves of foreign exchange, totaling $616.7 billion

According to the most recent RBI statistics, India’s foreign exchange reserves rose by $591 million to $616.733 billion during the week that ended on January 26. The total reserves have decreased by $2.795 billion to $616.143 billion over the previous reporting week.

In October 2021, the nation’s FX reserves hit an all-time high of $645 billion. The reserves suffered as a result of the central bank using the kitty to protect the rupee from pressure brought on mostly by events that have occurred globally since last year.

The report showed that for the week ending January 26, foreign currency assets—a significant part of the reserves—rose $289 million to $546.144 billion.

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.

According to the RBI, gold reserves rose $269 million to $47.481 billion throughout the course of the week. The apex bank said that the special drawing rights (SDRs) had increased by $27 million to $18.248 billion.

According to RBI statistics, India’s reserve position with the IMF increased by $6 million to $4.86 billion during the reporting week.

The rupee in the week that concluded on February 2nd

The Indian rupee saw significant gains during the week ending February 2, rising from a low of 83.1550 to a high of 82.82 thanks to dollar inflows. The rupee has reached 82.93 due to the RBI’s purchase of dollars at 82.82.

The rupee is predicted to continue rising as a result of inflows, although the RBI may limit gains and continue purchasing dollars in the next week. The range may be between 82.70 and 83.20, according to Anil Kumar Bhansali, managing director of Finrex Treasury Advisors LLP and head of Treasury.