India’s foreign exchange reserves increased by $2.6 billion to $586.11 billion, a one-month high, according to figures released on Friday by the Reserve Bank of India (RBI).
India’s forex reserves rise: The prior week saw a $2.4 billion decline in the reserves. The RBI reversed the deal on October 23 after a $5 billion dollar/rupee swap last year, in which it sold dollars and purchased rupees. The effect of this maturity is shown in the reserves data for the week.
IDFC First Bank economist Gaura Sen Gupta states that this week’s foreign reserves reflect the age of the swap and the revaluation modifications.
“Furthermore, the RBI, which has probably been very frequent in its spot intervention, would have explained it.”
Both the appreciation or depreciation of foreign assets kept in reserves and RBI intervention lead to changes in foreign currency assets.
India includes its reserve tranche position in the IMF as a part of its foreign exchange reserves.
During the week ending October 27, the rupee had a modest decrease in value relative to the US dollar, trading within the 83.0650–83.2550 range.
Furthermore, After plunging to a record low of 83.2950 on Wednesday, the currency ended the week mostly unchanged at 83.2750 on Friday.