Edited By: Mohammad Haris
Last Updated: December 24, 2022, 09:45 AM IST
In October 2021, the country’s foreign exchange kitty had reached an all-time high of $645 billion.
Foreign currency assets, a major component of the overall reserves, decrease $500 million to $499.624 billion during the week to December 16
After increasing for five consecutive weeks, India’s forex kitty declined $571 million to $563.50 billion for the week ended December 16, according to the latest data from the RBI. In the previous week, the overall reserves had witnessed a jump in the fifth straight week and increased $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. The reserves had been declining as the central bank deployed the reserve to defend the rupee amid pressures caused majorly by global developments.
Foreign currency assets (FCA), a major component of the overall reserves, decreased $500 million to $499.624 billion during the week to December 16, as per the Weekly Statistical Supplement released by the Reserve Bank of India (RBI).
Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves decreased $150 million to $40.579 billion, it said. The special drawing rights (SDRs) jumped $75 million to $18.181 billion.
The country’s reserve position with the International Monetary Fund (IMF) also rose $4 million to $5.114 billion in the reporting week, the data showed.
Between the weeks ended 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 the country’s current foreign exchange reserves can pay for almost nine months’ worth of anticipated imports for 2022-23.
The rupee dipped 3 paise to close at 82.82 against the US dollar on Friday due to firm crude oil prices and steep losses in domestic stocks amid growing concerns about interest rate hikes. Analysts said investors are concerned that strong US economic data will lead the Federal Reserve to double down on its interest rate hikes to control inflation.
Revised figures showed the US economy grew a lot more in July-September than initial projections, while jobless claims were less than expected last week. The Fed has already increased the interest rates to 15-year high levels.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, dropped 0.14 per cent to 104.49.
Brent crude oil, the pricing basis for international trading, advanced 2 per cent to $82.61 per barrel on expectations of lower Russian crude exports from the Baltic region in December.
Foreign institutional investors (FIIs) turned net sellers in the capital markets on Friday as they offloaded shares worth Rs 706.84 crore, according to exchange data.
(With Inputs From PTI)
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