Saturday, May 18, 2024

India’s forex reserves rise by $1.657 billion, reach 9-month high

A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi. File

A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi. File
| Photo Credit: Reuters

India’s foreign exchange reserves went up by $1.657 billion to $586.412 billion, according to the data available with the Reserve Bank of India (RBI.)

The country’s forex reserves gained for a second consecutive week and witnessed a level not seen in more than nine months. Last week, the overall reserves surged by $6.306 billion to $584.755 billion. In dollar terms, the foreign currency assets included the effect of appreciation or depreciation of non-U.S. units such as the euro, pound and yen held in the foreign exchange reserves.

According to the weekly statistical supplement of RBI released on Friday evening, gold reserves of the country declined by $521 million to $46.125 billion. The Special Drawing Rights (SDRs) were down by $38 million to $18.412 billion.

According to statistics from the apex bank, the nation’s reserve position with the International Monetary Fund (IMF) grew by $12 million to $5.19 billion during the reporting week. On Friday, in the foreign exchange market, the Rupee edged higher against the dollar. The partially convertible Rupee was hovering at 82.0950, compared with its close of 82.1750 during the previous trading session.

The U.S. Dollar index (DXY), which tracks the greenback’s value against a basket of currencies, was up 0.03% to 101.88.

The RBI noted in its monthly bulletin that global economic conditions are beset by heightened uncertainty as financial conditions remain volatile and financial markets are on edge. It added that in the country, aggregate demand conditions remain resilient, supported by a rebound in contact-intensive services.

Expectations of a bumper rabi harvest, the fiscal thrust on infrastructure, and the revival in corporate investment in select sectors augur well for the economy. Headline consumer price index-based (CPI) inflation has gradually declined from its peak of 7.8% in April 2022 to 5.7% in March 2023 and is projected to ease further to 5.2% in Q4: 2023-24.

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