Forex Reserves in India: The country’s foreign exchange reserves have declined by $6.92 billion to $695.35 billion in the week ending October 24. Reserve Bank of India (RBI) gave this information on Friday. In the previous week, foreign exchange reserves had increased by $ 4.49 billion to reach an all-time high of $ 702.28 billion.
Where did the decline come from?
According to RBI data, the largest part of foreign exchange reserves i.e. Foreign Currency Assets declined by $ 3.86 billion to $ 566.54 billion. Apart from the dollar, these assets also include the impact of price changes in other currencies like euro, pound and yen. During the week under review, gold reserves decreased by $ 3.01 billion to $ 105.536 billion. Apart from this, Special Drawing Rights (SDR) also declined by $58 million to $18.66 billion.
However, during the same period, India’s reserves in the International Monetary Fund (IMF) increased by $ 6 million to $ 4.608 billion. According to experts, this decline in foreign exchange reserves is mainly due to fluctuations in other major currencies against the dollar and the intervention of RBI.
Rupee stable at 88.69 against dollar
On Friday, the Indian rupee closed stable at 88.69 (provisional) against the US dollar after minor fluctuations throughout the day. Weakness in the domestic stock markets and the strength of the American currency were the main reasons for this. The rupee opened at 88.60 per dollar in the interbank foreign exchange market and touched a high of 88.59 and a low of 88.78 during trading. In the end it remained stable at its previous closing level of 88.69 per dollar. On Thursday, the rupee fell by 47 paise and closed at the same level.
The dollar index, which shows the position of the dollar against six major currencies, reached 99.39 with a slight increase of 0.04 percent. There was weakness in the domestic stock markets too – Sensex fell 465.75 points to 83,938.71 points and Nifty fell 155.75 points to close at 25,722.10 points. In the international market, Brent crude, the standard of crude oil, declined by 0.68 percent to $ 64.56 per barrel. At the same time, according to stock market data, foreign institutional investors (FIIs) were sellers on Thursday and made a net sale of shares worth Rs 3,077.59 crore.
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