India’s Forex Reserve: India’s foreign exchange reserves declined by $ 2.33 billion to $ 700.24 billion in the week ended on 26 September. RBI released data in this regard on Friday. A week ago, the country’s total foreign exchange reserves were $ 702.57 billion, which fell with a decrease of $ 39.6 million.
Foreign exchange reserves decline
According to the Reserve Bank data, foreign exchange assets, considered to be the major component of currency reserves, fell by $ 4.39 billion to $ 581.76 billion. These assets also include the effect of price growth or depreciation in non-American currencies such as euros, pounds and yen.
In a recent Monetary Policy Committee (MPC) meeting, RBI Governor Sanjay Malhotra said that by the end of March 2025, India’s foreign exchange reserves are so enough that they can cover the import of 11 months of goods or complete about 95.4 percent of the total outstanding external loans of the country. This reflects the strength and financial stability of India’s foreign exchange status.
Gold reserves increased by $ 2.24 billion to $ 95.02 billion in the week under review, while special drawing rights (SDR) declined by $ 9 million to $ 18.78 billion. Apart from this, India’s reserved reserves in the International Monetary Fund decreased by $ 8,9 million to $ 4.67 billion.
Rupee weakened in interbank foreign exchange market
Due to dollar demand of importers and frequent foreign capital withdrawal, the rupee fell seven paise against dollar in the interbank foreign currency exchange market on Friday at 88.78 (temporary). According to Forex traders, the rupee remains around its all -time low against the dollar due to trade tension and global uncertainties.
In addition, the issue of frequent foreign capital withdrawal and US visa fee increase also put pressure on the domestic currency. In day -to -day trading, the rupee opened at 88.68 against the US dollar and went to a low of 88.85, while finally it fell seven paise to 88.78 (temporary) from the last closed price.
For comparison, the rupee closed at 88.71 against the dollar with a gain of nine paise on Wednesday. Significantly, on September 30, the rupee came to its all -time low of 88.80 against the US dollar. Shares, foreign currency, bullion and commodity markets remained closed on Thursday due to Gandhi Jayanti and Dussehra.
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