1. You Are At:
  2. English News
  3. Business
  4. India's foreign exchange reserves at new over 2-year low amid weak rupee

India's foreign exchange reserves at new over 2-year low amid weak rupee

Forex reserves India: The Indian rupee has been weakening over the past few weeks to hit fresh new all-time lows as the US dollar strengthened against major global currencies.

Sheenu Sharma Edited By: Sheenu Sharma New Delhi Published on: October 29, 2022 10:05 IST
forex reserves, forex reserves india, forex reserves of india 2022, forex reserves of countries, for
Image Source : PIXABAY.COM. India's foreign exchange reserves at new over 2-year low amid weak rupee.

Highlights

  • Ind's forex reserves during week that ended on Oct 21 fell to new over 2-year low of USD 524.520 bn
  • India forex reserves were at 528.367 bn during the week that ended on Oct 14, says RBI data
  • India's foreign currency assets declined by USD 3.59 billion to USD 465.075 billion

Forex reserves India: India's foreign exchange reserves during the week that ended on October 21 fell to a new over two-year low of USD 524.520 billion, a drop of USD 3.85 billion from the previous week.

During the week that ended on October 14, the country's forex reserves were at 528.367 billion, RBI data showed. According to RBI's latest data, India's foreign currency assets, which are the biggest component of the forex reserves, declined by USD 3.59 billion to USD 465.075 billion.

The value of gold reserves dropped by USD 247 million to USD 37.206 billion during the latest week.

The value of India's Special Drawing Rights (SDRs) with the International Monetary Fund, however, rose by USD 7 million to USD 17.440 billion during the week under review, the RBI data showed.

The forex reserves have been falling for months now because of RBI's likely intervention in the market to defend the depreciating rupee against a surging US dollar. Also, rising costs of imported items also necessitated the higher requirement of reserves for trade settlement.

The Indian rupee has been weakening over the past few weeks to hit fresh new all-time lows as the US dollar strengthened against major global currencies.Last week, the rupee breached the 83 mark for the first time in its history. So far this year, the rupee has depreciated around 10-12 per cent.

Typically, the RBI intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

India's forex reserves had declined by around USD 100 billion ever since Russia invaded Ukraine in late February when imports of energy and other commodities got costlier globally.

Over the past 12 months, the reserves declined by around USD 115 billion on a cumulative basis.

ALSO READ: India's forex reserves rises after four weeks of fall

Latest Business News

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business