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Sharp Fall In Forex Reserves In 2 Years Tracking Rupee All -Time Low, Indicates RBI Intervention


The most significant fall of Forex Reserves in 2 years tracked the low rupee of all time, Indicates RBI intervention

India’s forex reserves fell most sharply in two years to March 11 the week after the rupee weakened to an all -time low against the US, indicating that the Reserve Bank of India is selling dollars in the open market to support the currency.

According to RBI data, foreign exchange reserves fell by $ 9.646 billion to $ 622.275 billion in the week ended March 11, the most significant decline in two years.

The rupee hit 77 per dollar, an all-time low as oil prices soared to decades-high driven by supply concerns over sanctions imposed by Western countries on Russia in response to its invasion of Ukraine, the most significant attack on Europe. country since the Second World War.

The week before the latest report, forex reserves had jumped by $ 394 million to $ 631.92 billion in the week ended March 4th.

While the decline was the most significant in two years, forex reserves remained above $ 600 billion, with an all -time high of $ 642.453 billion in the week ended September 3, 2021.

Traders suggesting RBI intervention and a drop in oil prices have supported energy -sensitive currencies ever since. It has recovered to close stronger at 75.80 per dollar in the last trading session on Thursday, March 17th.

The Indian market is closed on Friday due to the ‘Holi’ festival.

This week, the currency started weak, tracking lower equities and higher oil prices, which rose more than 3 percent to over $ 111.

Agrasmartcity

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