This news is a bit disappointing for the government which is trying to boost the country’s economy. There has been a decline in India’s foreign exchange reserves amid dealing with the challenges of American high tariffs. In the week ending October 3, this reserve decreased by $ 276 million to $ 699.96 billion. Information in this regard was given by the Reserve Bank of India (RBI) on Friday.
reduction in foreign exchange reserves
Even in the previous week, India’s total foreign exchange reserves had declined by $2.33 billion to $700.24 billion. According to the RBI, foreign currency assets — a major component of total reserves — declined by $4.05 billion to $577.71 billion in the week ended October 3. These assets, expressed in dollar terms, are also affected by fluctuations in the value of other currencies such as the euro, pound and yen.
However, during the same period, the country’s gold reserves increased by $3.75 billion to reach $98.77 billion. Apart from this, Special Drawing Rights (SDR) also increased by $ 25 million to $ 18.81 billion, while India’s reserves with the International Monetary Fund (IMF) decreased by $ 4 million to $ 4.66 billion.
Rupee strengthened
Rupee showed slight strength in the foreign exchange market. On Friday, the rupee closed with a gain of 10 paise at 88.69 per dollar (provisional). The rupee got this support from the strength in domestic stock markets and fall in crude oil prices. According to foreign exchange traders, RBI intervention also supported the rupee. However, the strength of the US dollar limited the rise of the rupee. The rupee kept trading in the range of 88.50 to 88.80 throughout the day.
Market and investors situation
There was an atmosphere of strength in the stock markets.
BSE Sensex rose 328.72 points to close at 82,500.82.
Nifty 50 closed at 25,285.35, up 103.55 points.
Foreign institutional investors (FIIs) were also buyers and bought shares worth Rs 1,308.16 crore. Meanwhile, the dollar index, which gauges the dollar’s strength against six major currencies, fell 0.21% to 99.32. At the same time, Brent crude oil futures prices declined by 0.61% to $ 64.85 per barrel. Overall, even though there has been a slight decline in foreign exchange reserves, the position of the Indian economy currently remains balanced due to the strong domestic market, foreign investment and stability of the rupee.
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