India’s foreign exchange reserves have fallen to an 11-week low of $593.9 billion; see details

According to the most recent RBI statistics, India’s foreign exchange reserves decreased by $4.992 billion to $593.904 billion for the week ending September 8. The bank account has increased by $4.039 billion to $598.897 billion from the previous reporting period.

In October 2021, the nation’s foreign exchange reserves hit an all-time high of $645 billion. The reserves were depleted as the central bank utilized them to protect the rupee against pressures mostly brought on by global events since last year.

According to the Weekly Statistical Supplement published by the RBI, the foreign currency assets, a significant part of the reserves, declined by $4.265 billion to $526.426 billion for the week ending September 8.

The value of the gain or depreciation of non-US currencies like the euro, pound, and yen held in foreign exchange reserves is included in the foreign currency assets, expressed in dollar terms.

According to the RBI, gold reserves decreased by $554 million to $44.384 billion. According to the apex bank, the special drawing rights decreased by $134 million to $18.06 billion.

According to statistics from the apex bank, the nation’s reserve position with the IMF decreased by $39 million to $5.034 billion during the reporting week.

As a result of increasing crude oil prices and the US dollar’s strength versus its main international competitors, the rupee lost 13 paise on Friday to end the day at 83.16 against the US dollar.

“FPIs and oil corporations were the purchasers of the dollar throughout the week, which caused the rupee to fluctuate by 38 paise. Due to high valuations, FPIs sold off their equity positions. Oil corporations bought dollars as a result of the week’s $4.5 per barrel increase in oil prices. Apart from certain IPO inflows and FTSE rebalancing inflows, the RBI supplied the dollars that kept the rupee in a narrow range throughout the week, according to Anil Kumar Bhansali, head of (treasury) and executive director of Finrex Treasury Advisors LLP.

The trade imbalance came in at $24.16 billion, below predictions of $21 billion and July’s total of $20.67 billion, he said, and the rupee dropped by 20 pence as a result.