Finance
India’s foreign exchange reserves fell to a near two-month low of $594.89 billion as of Aug. 18, marking the country’s sharpest weekly drop in more than six months, according to statistics from the country’s central bank released on Friday.
They were down $7.27 billion from the previous week, the biggest drop since the week ending Feb. 10.
The changes in foreign currency assets, represented in dollars, include the impact of other currencies held in the Reserve Bank of India’s (RBI) reserves appreciating or depreciating.
The currency reserves include India’s position in the International Monetary Fund’s Reserve Tranche.
The RBI also intervenes in the spot and future markets to prevent the rupee from falling too far.
According to traders, the rupee fell to a 10-month low of 83.16 against the US dollar during the week covered by the foreign reserves data, prompting the RBI to intervene.
RBI Governor Shaktikanta Das emphasized earlier this week that the central bank has no specific aim for the rupee.
On Friday, the currency closed at 82.6475, up more than 0.5% for the week and its best weekly performance since July 14.
Source:BS
