India’s foreign exchange reserves declined $867 million to $593.037 billion in the week ended September 15, according to the latest RBI data. In the previous reporting week, the overall reserves dropped $4.99 billion to $593.90 billion.
In October 2021, the country’s reserves had touched an all-time high of $645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.
For the week ended September 15, the foreign currency assets, a major component of the reserves, decreased $511 million to $525.915 billion, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI).
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves were down $384 million to $44 billion, the RBI said. The special drawing rights (SDRs) were up $32 million to $18.092 billion, the apex bank said.
The country’s reserve position with the IMF was down $4 million to $5.03 billion in the reporting week.
Rupee During Week Ended September 22
The rupee remained below 83 for most part of the week but gained a boost on Friday.
Anil Kumar Bhansali, head (treasury) and executive director of Finrex Treasury Advisors LLP, said, “The rupee remained below 83 for most part of the week but gained a boost on Friday after the announcement of Indian Government Bonds in the JP Morgan bond index from 28th June 2024 which could bring $ 20-25 billion inflows into the country.”
He added that for the entire week oil companies and FPIs continued buying and RBI sold dollars not allowing any to fall beyond 83.27 keeping a tight leash over the value of the rupee. Importers got an opportunity today and they bought the dollar wholeheartedly to take the dollar rupee to a days high of 82.97 but closing was at 82.93.
(With PTI Inputs)
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