Forex Reserves
India's forex reserves swell by $3.55 billion to $599.53 billion
Mumbai: India’s foreign currency reserves grew for the fourth consecutive week, reaching $599.53 billion as of May 12, according to the Reserve Bank of India’s statistical supplement released on Friday.
The reserves grew by $3.55 billion compared to the previous week and were the highest since early June of the previous year, the data showed.
The reserves experienced a total growth of $11.7 billion over the past two weeks.
The Reserve Bank of India intervenes in the spot and forwards market to prevent extreme fluctuations in the exchange rate between the Indian rupee and the US dollar.
The central bank has previously explained that variations in reserves may also result from valuation gains or losses.
As per a Reuters report, the Reserve Bank of India's continuous intervention efforts to strengthen its reserves is posing a challenge to foreign banks that maintain a bullish outlook on the rupee.
During the week when the forex reserves data was reported, the rupee witnessed a 0.4% decline, largely influenced by the strength of the dollar index.
Throughout the week, the rupee traded in a range of 81.6900 to 82.2250 against the dollar.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
