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India’s Forex Reserves Decline by $4.5 bn to $528.36 bn

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India's Forex Reserves Decline by $4.5 bn to $528.36 bn

(CTN News) – The Reserve Bank of India (RBI) released a weekly statistical supplement on Friday showing a drop of $4.5 billion in foreign exchange Forex reserves over the past week.

At the end of last week, India’s Forex reserves were $532.28 billion. In the week ended October 7, Forex reserves rose marginally but had fallen consistently for eight straight weeks. They’re near their lowest levels since July 2020.

Last October, the country’s forex stash reached an all-time high of $645 billion. As the central bank defends the rupee amid global pressures, reserves have been dropping.

“There’s no doubt there’s been a depletion as inflows have decreased and trade deficits have increased.

Deepak Singh, a chief business officer at Reliance Securities, says India has a reasonably large forex reserve to tide over the current over-depletion of forex reserves.

In the week ending October 14, Foreign Currency Assets (FCA), one of the major components of overall reserves, dropped by $2.828 billion to $468.668 billion, according to the Reserve Bank of India’s Weekly Statistical Supplement.

FCAs include the appreciation or depreciation of non-US units like the euro, pound, and yen held in forex reserves.

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Gold reserves, which had risen by $1.35 billion the previous week, declined by $1.502 billion to $37.453 billion.

Special Drawing Rights (SDRs) were down by $149 million to $17.433 billion.

In the reporting week, the country’s Forex reserves with the IMF fell by $23 million to $4.813 billion.

Today, the rupee pared its initial losses and settled 4 paise higher at 82.75 (provisional) against the US dollar.

The local currency opened at 82.89 on the interbank foreign exchange market and hit a high of 82.59 and a low of 82.91.

Against the American currency finally settled at 82.75, up 4 paise.

As a result of our strong microeconomic fundamentals, the rupee holds up well against other currencies, giving us hope.”

The rupee rebounded from its lifetime low to close 21 paise higher on Thursday.

The dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.47 percent to 113.41.

Brent crude futures fell 0.11 percent to USD 92.28.

The 30-share BSE Sensex gained 104.25 points or 0.18 percent to end at 59,307.15, while the NSE Nifty advanced 12.35 points or 0.07 percent to 17,576.30.

On Thursday, foreign institutional investors (FIIs) purchased shares worth £1,864.79 crore in the capital markets.

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Arsi Mughal is a staff writer at CTN News, delivering insightful and engaging content on a wide range of topics. With a knack for clear and concise writing, he crafts articles that resonate with readers. Arsi's pieces are well-researched, informative, and presented in a straightforward manner, making complex subjects accessible to a broad audience. His writing style strikes the perfect balance between professionalism and casual approachability, ensuring an enjoyable reading experience.

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