India’s foreign exchange reserves broke a three-week losing streak and stood at $602.16 billion as of August 11, according to Friday’s data from the country’s central bank.

Reserves increased by $700 million over the previous week, compared to a total decline of $7.6 billion in the previous three weeks.

Changes in foreign currency assets expressed in dollar terms include the effects of appreciation or depreciation of other currencies held in the reserves of the Reserve Bank of India (RBI).

Foreign exchange reserves include India’s reserve tranche position with the International Monetary Fund.

The central bank also intervenes in the spot and futures markets to prevent a sharp fall in the rupee.

Reuters quoted traders as saying that the RBI this week sold dollars through public sector banks to ensure the rupee did not fall to a record low.

The rupee traded in the range of 82.6725 to 82.8525 against the dollar for the week to which the forex reserves data pertains.

On Friday, the rupee closed at 83.1025, down 0.2% this week.

first published: 18 August 2023 | 6:27 pm First

Leave a Reply

Your email address will not be published. Required fields are marked *