India's Forex Reserves Fall by $7.8 Billion Amid Weakening Rupee
India forex reserves drop $7.8 bn; rupee weakens to 94.47 against the dollar
The Economic Times
Image: The Economic Times
India's foreign exchange reserves dropped by $7.8 billion to $690.7 billion for the week ending May 1, as the rupee weakened to 94.47 against the US dollar. This marks the second consecutive weekly decline, attributed to the Reserve Bank of India's efforts to stabilize the currency amid market volatility.
- 01India's forex reserves fell by $7.8 billion to $690.7 billion.
- 02The rupee weakened to 94.47 against the dollar.
- 03This is the second consecutive week of decline in reserves.
- 04Foreign currency assets decreased by $2.8 billion.
- 05Gold reserves also dropped by $5 billion.
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India's foreign exchange reserves experienced a significant decline of $7.8 billion, bringing the total to $690.7 billion as of May 1. This marks the second consecutive weekly drop, following an all-time high of $728.49 billion on February 27, just before the onset of the Iran war. The rupee closed at 94.47 against the US dollar, down 25 paise, and had reached a record low of 95.40 on May 5. The Reserve Bank of India (RBI) has been utilizing its reserves to curb volatility in the currency market. Additionally, foreign currency assets, which form the bulk of the reserves, fell by $2.8 billion to $551.8 billion, while gold reserves decreased by $5 billion to $115.2 billion.
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The decline in forex reserves may lead to increased volatility in the currency market, potentially affecting import prices and inflation.
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