edited by: Mohammad Haris
Last Update: December 24, 2022, 09:45 IST
In October 2021, the country’s foreign exchange reserves were to reach an all-time high of $645 billion.
Foreign currency assets, a major component of total reserves, declined by $500 million to $499.624 billion during the week ended December 16
After increasing for five consecutive weeks, India’s forex kitty shrank by $571 million to $563.50 billion for the week ended December 16, according to the latest RBI data. In the previous week, total reserves witnessed a jump for the fifth straight week and increased by $2.91 billion to $564.06 billion.
The country’s foreign exchange kitty had reached an all-time high of $645 billion in October 2021. Reserves were declining as the central bank deployed reserves to protect the rupee amid pressure mainly due to global developments.
Foreign currency assets (FCAs), a major component of total reserves, declined by $500 million to $499.624 billion during the week ended December 16, according to the weekly statistical supplement released by the Reserve Bank of India. India (RBI).
Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units such as the euro, pound and yen held in foreign exchange reserves.
Gold reserves decreased by $ 150 million to $ 40.579 billion. Special Drawing Rights (SDRs) rose by $75 million to $18.181 billion.
The country’s reserve position with the International Monetary Fund (IMF) also increased by $4 million to $5.114 billion in the week under review, the data showed.
Between the weeks ending November 4, 2022, and December 2, 2022, the country’s foreign exchange reserves increased by $31.17 billion. RBI governor Shaktikanta Das has also said that the country’s current foreign exchange reserves can pay for about nine months of projected imports for 2022-23.
The rupee on Friday depreciated 3 paise to close at 82.82 against the US dollar on firming crude prices and a sharp fall in domestic equities amid rising concerns over interest rate hike. Analysts said investors worried that strong US economic data would prompt the Federal Reserve to double down on its interest rate hikes to control inflation.
Revised data showed the US economy grew much more in July-September than initial estimates, while jobless claims were lower than expected last week. The Fed has already raised interest rates to a 15-year high.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.14 per cent to 104.49.
Brent crude oil, the pricing base for international trade, rose 2 percent to $82.61 a barrel in December on hopes of lower Russian crude exports from the Baltic region.
Foreign institutional investors (FIIs) turned net sellers in the capital market on Friday, selling shares worth Rs 706.84 crore, according to exchange data.
(With inputs from PTI)
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