India’s forex reserves hit two-month low

According to figures released by the central bank , India’s foreign exchange reserves fell for a second consecutive week and as of February 16 were at a two-month low of $616.10 billion.

Following a $5.3 billion decline the week before, the reserves decreased by $1.13 billion in the reporting week. The Reserve Bank of India (RBI) steps in to control excessive rupee volatility by intervening in the foreign currency market.

Both the appreciation or depreciation of foreign assets kept in reserves and RBI intervention lead to changes in foreign currency assets.

India’s reserve tranche position in the IMF is also included in its foreign exchange reserves.

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%for the week.

Source:IE