India’s Forex Reserves Drop to Lowest Level in 2 Months

Ira Singh
Khabar Khabaron Ki,24 Feb’24

India’s foreign exchange reserves dropped for a second straight week and stood at a two-month low of $616.10 billion as of February 16, data from the central bank showed on Friday.

The reserves fell by $1.13 billion in the reporting week, after having fallen by $5.3 billion in the prior week. The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.

Changes in foreign currency assets are caused by the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves. Foreign exchange reserves also include reserve tranche position in the International Monetary Fund.

In the week that the foreign exchange data pertains, the rupee largely remained unchanged against the dollar and traded in a thin range of 82.9725 and 83.1150. The domestic currency settled at 82.9375 on Friday, up 0.1 per cent for the week, according to sources.