India's FX reserves fall to over 2-month low of $682.13 bln as on Nov 1
This story was originally published at 19:34 IST on 8 November 2024
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NEW DELHI – India's foreign exchange reserves fell to an over two-month low of $682.13 billion in the week ended November 1, primarily due to the central bank's active dollar sales intervention in the domestic spot market. The reserves fell by $2.68 billion during the week, declining for the fifth time in a row, data released by the Reserve Bank of India on Friday showed.
In the face of strong foreign outflows, the rupee remained in a tight range of only 2 paise throughout the week ended Nov 1. as the central bank actively intervened in the spot market through dollar sales. Market participants expect foreign exchange reserves to fall further next week due to the RBI's continued dollar sales interventions.
"India FX reserves fell as on Nov 1 as the RBI continues to sell dollars, while FPIs were the buyers in this week," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "Reserves may fall further as selling (of dollars by the RBI) is continuing, though it has slowed down considerably."
Foreign currency assets fell by $3.90 bln to $589.85 billion as of Nov. 1. Calculated in dollar terms, the foreign currency assets include the impact of appreciation or depreciation of non-US units like the euro, the pound and the yen held in foreign exchange reserves. However, the portion of gold in the reserves rose by $1.2 billion to $69.75 billion. End
US$1 = INR 84.38
Reported by Pratiksha
Edited by Akul Nishant Akhoury
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