India’s foreign exchange (forex) reserves jumped $5.077 billion to $595.397 billion during the week ended November 17, according to the latest RBI data. In the previous reporting week, the kitty declined $462 million to $590.321 billion.
For the week ended November 17, the foreign currency assets, a major component of the reserves, increased $4.387 billion to $526.391 billion, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI).
In October 2021, the country’s forex kitty had reached an all-time high of $645 billion.
The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves were up $527 million to $46.042 billion during the week, the RBI said. The special drawing rights were up $120 million to $18.131 billion, it said.
India’s reserve position with the IMF was up $42 million to $4.833 billion in the reporting week, the RBI data showed.
Rupee This Week
The Indian rupee was range bound for the week ended November 24 with importers buying and the RBI selling dollars, thus keeping it in a range of 83.22/83.38.
“The inflows from IPOs also did not have any effect as they got absorbed in the dollar buying,” said Anil Kumar Bhansali, head (treasury) and executive director of Finrex Treasury Advisors LLP.
He said the rupee is expected to be range-bound with depreciation mode in the holiday-shortened next week. The range is expected to be 83.20 to 83.50 with a close watch on RBI which has been protecting the rupee.
(With PTI Inputs)
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