India’s foreign currency reserves increased for a second week, with pressure on the rupee marginally lessening as a result of declining oil and commodities prices and a less interventionist Fed.
According to information issued today by the Reserve Bank of India, for the week ending Nov. 18, India’s foreign exchange reserves increased $2.54 billion to $547.25 billion. Gains in the Foreign Currency Assets (FCA), a significant portion of the total reserves, can be blamed for the increase. FCA is the appreciation or devaluation of non-US currencies held in foreign exchange reserves, such as the euro, pound, and yen. Today, the rupee fell to 81.6850 against the dollar, ending the week with no change.
The greatest weekly increase in India’s foreign currency reserves since August 2021, the reserves increased by a staggering $14.72. The surge is due to the central bank’s recent $8 billion anticipated purchase of foreign currencies. Spot currency reserves are currently $95.2 billion lower than the record high of $642.45 billion reached on September 3 of last year, down from $607 billion at the end of March.