25, February, 2024
HomeBusinessIndia's Foreign Exchange Reserves Surge as RBI Bolsters Defense Against Global Pressures

India’s Foreign Exchange Reserves Surge as RBI Bolsters Defense Against Global Pressures

Published on

India’s foreign exchange reserves witnessed a substantial boost, increasing by $2.579 billion to reach $586.111 billion by the end of the week on October 27, as reported by the latest data from the Reserve Bank of India (RBI). This notable surge comes in the wake of the previous week’s decline, where the overall reserves had dipped by $2.363 billion, resting at $583.532 billion.

In October 2021, India’s foreign exchange reserves had scaled an all-time high of $645 billion. However, these reserves have faced challenges as the central bank deployed its foreign currency reserves to defend the rupee amidst substantial global developments over the past year.

Read Also |Is this the reason RBI to return the 2000 rupee note..?

For the week ending on October 27, the foreign currency assets, a significant component of the reserves, registered an impressive increase of $2.303 billion, bringing the total to $514.504 billion, according to the Weekly Statistical Supplement released by the RBI.

The foreign currency assets are expressed in dollar terms and encompass the effects of appreciation or depreciation of non-US currencies like the euro, pound, and yen held within the foreign exchange reserves. Additionally, gold reserves experienced a rise of $499 million, reaching $45.923 billion during the same week, as reported by the RBI.

The special drawing rights (SDRs) declined slightly by $15 million, resting at $17.91 billion, according to the apex bank. India’s reserve position with the International Monetary Fund (IMF) also showed a decrease of $208 million, with the total now standing at $4.773 billion for the reporting week, as indicated by central bank data.

Anil Kumar Bhansali, the head of treasury and executive director of Finrex Treasury Advisors LLP, commented on the rupee’s performance, stating, “The rupee closed at its lowest at 83.2850 with a range of 12 paise during the entire week. The forex reserves increased by $2.579 billion on October 27, 2023, the week in which the swap of $5 billion matured, and RBI purchased those dollars to bolster its reserves.”

Read Also | Indian Rupee Opens Slightly Weaker Against Strong Dollar, Sustained Outflows

Regarding the domestic currency, Bhansali anticipated that the rupee would likely remain within the range of 83 to 83.35 as the RBI continues to sell and others buy dollars in the coming week. He further noted, “We expect a potential breakout in this range sooner rather than later.”

Latest articles

Lemon Magic – Creative Ways to Transform Used Citrus into Household Marvels

Lemons, with their invigorating aroma and tangy taste, are culinary companions that bring a...

Sageuk K-Dramas Demystified: Traditional vs. Fusion

Sageuks, a portmanteau of 'sa' (historical) and 'geuk' (drama), represent a captivating genre of...

Xiaomi 14 Ultra vs Samsung S24 Ultra: A Flagship Showdown

In the ongoing saga of flagship smartphones, the battle intensifies as Xiaomi's recently unveiled...

More like this

Cryptocurrency Market Snapshot: Bitcoin, Ethereum, and Top Tokens in Focus

In the dynamic world of cryptocurrencies, today's market trends paint a vivid picture of...

Vice Media and Engadget Navigate Media Evolution with Strategic Job Cuts

In a dynamic shift within the media industry, both Vice Media and Yahoo-operated Engadget...

Reddit Sets Sail for IPO with ‘RDDT’ Ticker on NYSE Amid User-Centric Approach

Reddit, the widely-used social media platform, is making waves as it gears up for...
Enable Notifications OK