India’s foreign exchange reserves jumped $2.579 billion to $586.111 billion in the week ended October 27, according to the latest RBI data. In the previous reporting week, the overall reserves had dropped by $2.363 billion to $583.532 billion.
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 foreign currency reserve to defend rupee amid pressures caused majorly by global developments since last year.
For the week ended October 27, the foreign currency assets, a major component of the reserves, increased by $2.303 billion to $514.504 billion, according to the Weekly Statistical Supplement released by the RBI.
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 by $499 million to $45.923 billion during the week, the RBI said.
The special drawing rights (SDRs) were down by $15 million to $17.91 billion, the apex bank said. India’s reserve position with the IMF was down by $208 million to $4.773 billion in the reporting week, the central bank data showed.
Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, said “The rupee closed at its lowest at 83.2850 with a range of 12 paise during the entire week. The forex reserves increased by $2.579 billion on October 27, 2023, the week in which the swap of $5 billion matured and RBI bought those dollars and increased its reserves.”
On the domestic currency, he said the rupee is expected to remain in the same range of 83 to 83.35 as RBI sells and others buy dollars next week too. “We expect a breakout in the range sooner than later.”
(With PTI Inputs)
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