Dollar vs. rupee: According to the most recent Reserve Bank of India (RBI) data, India’s foreign exchange reserves fell by $5 billion to $588.314 billion during the week ended July 1, 2022, as the Indian National Rupee (INR) declined versus the US dollar (USD).
After experiencing a three-week stretch of decline, India’s foreign reserves surged by $2.734 billion to $593.323 billion the previous week. The week ending July 1, 2022, saw a $504 million decline in India’s gold reserves, bringing the total to $40.422 billion.
India’s foreign exchange assets, which make up the largest portion of the foreign exchange reserves, decreased by $4.47 billion to $524.745 billion during the most recent week, according to the most recent statistics from the RBI.
Additionally, India’s holdings in gold decreased by $504 million to $40.422 billion, while its holdings in SDR (special drawing rights) decreased by $77 million to $18.133 billion and increased by $44 million to $5.01 billion.
Due to the RBI’s potential market intervention to protect the continually weakening rupee, which is at an all-time low, the nation’s foreign exchange reserves have decreased for four of the last five consecutive weeks.
In order to prevent a sharp depreciation of the rupee, the Indian central bank typically intervenes in the market through liquidity management, including by selling dollars. The RBI raised interest rates in the previous two monetary policy review meetings, demonstrating that the Indian central bank is not an outlier when it comes to raising interest rates.
The US dollar has gained more than 6.7% against the Indian rupee so far this year. The government has therefore increased import taxes on gold and placed additional charges on the export of gasoline, diesel, and aviation turbine fuel (ATF) in an effort to stem the collapse in the value of the Indian rupee.
According to Sugandha Sachdeva, Vice President – ,and Currency Research, Religare Broking, “the Indian rupee is reeling under pressure on the back of a rise in the dollar index towards a multi-decade peak, incessant portfolio outflows, soaring crude oil prices, and a rising interest rate regime.
” India’s New Delhi, July 9 (ANI) The Reserve Bank of India’s weekly report showed that during the week that ended on July 1, India’s foreign exchange reserves fell by $5 billion to $588.314 billion.
Data from the RBI show that during the most recent week, India’s foreign currency assets, which make up the largest portion of the foreign exchange reserves, fell by $4.47 billion to $524.745 billion.
The country’s reserve position with the International Monetary Fund increased by $44 million to $5.01 billion while gold reserves decreased by $504 million to $40.422 billion and special drawing rights decreased by $77 million to $18.133 billion.
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