Forex: India’s foreign exchange (forex) reserves saw a substantial uptick, surging by $6.396 billion to reach $642.492 billion for the week ending March 15, as per the most recent data released by the Reserve Bank of India (RBI). This follows a notable increase in the previous reporting week, where the overall reserves had climbed by $10.47 billion, reaching $636.095 billion. These successive increments underscore India’s strengthened position in terms of forex reserves, reflecting positively on its economic stability and resilience in the global financial landscape.
Back in October 2021, India’s forex reserves had soared to an unprecedented pinnacle, reaching an all-time high of $645 billion. However, the reserves encountered a decline as the central bank tapped into this substantial pool to shield the rupee from pressures exacerbated primarily by global developments since
During the week concluded on March 15, the foreign currency assets, which constitute a significant portion of the reserves, surged by $6.034 billion to reach $568.386 billion, as per the provided data. It’s noteworthy that foreign currency assets encompass the impact of the appreciation or depreciation of non-US units such as the euro, pound, and yen, which are held within the Foreign exchange reserves when denominated in dollar terms.
The Reserve Bank of India (RBI) reported that gold reserves saw a rise of $425 million, reaching $51.14 billion for the week. Additionally, the apex bank stated that special drawing rights (SDRs) increased by $65 million to $18.276 billion.
According to data from the apex bank, India’s reserve position with the IMF decreased by $129 million to $4.689 billion during the reporting week.
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Amid a strengthening US dollar against major currencies in international markets, the rupee has reached its lowest level ever, standing at 83.61 against the US dollar.
Forex
Anil Kumar Bhansali, in his capacity as the head of treasury and executive director at Finrex Treasury Advisors LLP, noted that the dollar-rupee market’s meager trading activity, currently at 1.50 percent, has spurred heightened demand for the dollar, thereby driving the recent breakout. Despite the influx of inflows, they are being counterbalanced by outflows experienced over the past three days. Bhansali anticipates a trading range of 83.25/83.75 for the upcoming week.
