Rupee continues to fall: Despite a record increase in foreign exchange reserves, the rupee remained under pressure. The rupee fell 31 paise to close at 90.99 (provisional) against the US dollar.
Good news for India
India's Forex Reserve: While global markets remain volatile due to the threat of a potential conflict between the United States and Iran, and the Indian rupee is seeing a decline in the currency market, some comforting news has emerged for India. However, the domestic stock market recorded gains on Friday.
Foreign exchange reserves hit a new high.
According to data released by the Reserve Bank of India (RBI), the country's foreign exchange reserves increased by $8.66 billion to an all-time high of $725.72 billion in the week ended February 13. Previously, reserves had declined by $6.71 billion to $717.06 billion in the week ended February 6. The previous high was $723.774 billion in January.
Foreign currency assets (FCAs), the largest component of the foreign exchange reserves, increased by $3.55 billion to $573.60 billion in the week under review, according to the RBI. These assets, denominated in dollars, also include the impact of fluctuations in the value of non-US currencies such as the euro, pound and Japanese yen.
increase in gold reserves
Gold reserves and SDRs also increased. The value of gold reserves increased by $4.99 billion to $128.46 billion. Special Drawing Rights (SDRs) increased by $103 million to $18.92 billion.
Meanwhile, India's reserve position with the International Monetary Fund (IMF) increased by $19 million to $4.734 billion. Rupee continues to fall Despite a record increase in foreign exchange reserves, the rupee remained under pressure. The rupee fell 31 paise to close at 90.99 (provisional) against the US dollar.
The rupee opened at 90.94 at the interbank foreign exchange market and fell to a low of 91.04 during the day. According to analysts, even the rally in the domestic stock market failed to support the rupee. Potential tensions between the US and Iran negatively impacted investor sentiment, which in turn had a direct impact on the rupee.
