Home News india: India’s foreign exchange reserves rise $2.7 billion in the June 24th week to $593 billion

india: India’s foreign exchange reserves rise $2.7 billion in the June 24th week to $593 billion

by WOOWinvest
0 comment
india: India’s foreign exchange reserves rise $2.7 billion in the June 24th week to $593 billion


India accumulated $2.7 billion in foreign exchange reserves in the week ended June 24, ending the steady depletion of foreign reserves in the previous three weeks.

Reserve Bank of India data showed reserves stood at $593.323 billion as of June 24. Among them, foreign currency assets were US$529.216 billion, while gold reserves were valued at US$40.926 billion. The balance is deposited with the International Monetary Fund as Special Drawing Rights and Reserves.

The central bank has spent more than $41 billion defending the currency since February. In the three weeks prior to that, reserves fell by $10.785 billion.

Rahul Bajoria, MD and chief India economist at Barclays, said that given that imported inflation remains high and the rupee does not appear to be significantly overvalued on a real effective exchange rate basis, Monetary support from the RBI is likely to continue.

The rupee closed at 79.045 against the dollar on Friday and 78.97 on Thursday. Sriram Iyer, senior research analyst for Indian markets, said the exit of overseas investors from the Indian market, coupled with weak macro indicators, weighed on sentiment.

securities.

Economists expect India’s foreign exchange reserves, which serve as a safeguard for imports and a buffer against any external risks, could fall further to about $565 billion by the end of FY23.

“When sentiment turns, we think RBI reserves are likely to recover, which means a lot of intervention on the other hand and limited room for a quick appreciation of the rupee,” he said.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy