According to the Reserve Bank of India’s most recent figures, India’s foreign exchange reserves dropped $1.9 billion to $653 billion in the week ending December 13. That was almost a six-month low. It was the lowest level of reserves since June 28.
A $3 billion drop in foreign currency assets over the week caused the total reserves to drop.
In the week ending December 6, the reserves were $655 billion. Over the week, it had dropped by $3.2 billion.
On the other hand, the Gold reserve increased by $1.1 billion throughout the previous week. The data also showed the record. has fallen to $17.997 billion.
During the reporting week, India’s reserve position with the International Monetary Fund (IMF) declined by $27 million to $4.240 billion.
In the week that ended on September 27, the reserves hit a record high of $705 billion.
Due to the revaluation effect and the RBI’s intervention in the foreign exchange market through dollar sales, the rupee is still under pressure. The reserves have already dropped $52 billion this quarter. On Thursday, the rupee broke beyond the psychologically significant 85-to-dollar threshold. The native money is still valued at a dollar index continuing to grow.
To reduce excessive exchange rate volatility, the RBI intervenes on both sides of the foreign exchange market.
The local currency had a 0.1 percent depreciation over the previous week.
It has already lost 2.13 percent of its value in the current calendar year. It also lost 1.90 percent in the current fiscal year. The rupee has lost 0.62 percent of its value this month.
