Foreign Reserves

India's forex reserves dropped USD 5.654 billion to USD 666.933 billion during the week ended June 26, the RBI said on Friday. In the previous reporting week, the kitty jumped USD 963 million to USD 672.587 billion. The kitty had expanded to an all-time high of USD 728.494 billion during the week ended February 27 this year before the onset of the West Asia conflict, which led to several weeks of a drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales. Prime Minister Narendra Modi has also made multiple public appeals, starting May 11, to countrymen to conserve forex by cutting down on foreign travel, limiting fuel use and refraining from gold buys for a year. For the week ended June 26, foreign currency assets, a major component of the reserves, decreased USD 150 million to USD 541.067 billion, the central bank's data showed. Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation

An OMFIF survey found more central banks intend to reduce US dollar reserves than increase them over the next decade, while gold continues to gain prominence in reserve management

India's policy focus this week will be on Prime Minister Narendra Modi's Seychelles visit, industrial output, PMI data and forex reserves

Pakistan this month failed to reach an agreement with the UAE to roll over the debt for the first time in seven years

Indian unit settles at 90.64 per dollar as RBI intervenes via dollar sales; forex reserves drop $6.7 billion in week ended February 6 on decline in gold holdings

As of the end of September, the RBI held 880 tonnes of gold, of which 576 tonnes were stored domestically - an all time-high

S&P Global Ratings upgrades Pakistan's sovereign credit rating, citing improved fiscal conditions, contained external liquidity risks, and reduced near-term default risk

RBI may transfer a higher surplus in FY25 as gains from dollar sales and interest earnings strengthen its financials, exceeding last year's ₹2.1 trillion payout

The total reserves rose on the back of the rise in foreign currency assets which rose by $6.42 billion to $544.11 billion during the week

The RBI's net outstanding forward sale stood at $49.18 billion as of October end, compared with a net sale of $14.58 billion at the end of the previous month, the data showed

The RBI's frequent interventions have supported the rupee in the face of multiple headwinds, including a hawkish shift in the Federal Reserve's outlook for policy rates over 2025, concerns about India

Reserves rose by $12.58 billion, marking the fifth-highest weekly increase

The previous record high reserve was $667 billion in the week ended July 12

Foreign investors have poured money into India's markets this year as they look for alternatives to Chinese equities and after JPMorgan announced the inclusion of India's bonds into its key index

If the BJP secures over 400 seats in the Lok Sabha, it will be the second party to do so after Congress, which won 414 seats in 1984 after the assassination of Prime Minister Indira Gandhi

FCNR deposits were at $25.73 billion in March 2024, up from $24.90 billion in February 2024. This was higher than the $19.36 billion at the end of March 2023

Non-Resident Ordinary (NRO) deposits reached a level of $26.74 billion in January 2024, up from $26.40 billion in December 2023 and $23.12 billion a year ago

The rupee stayed firm and rose 9 paise to 82.74 against the US dollar in early trade on Thursday on the back of a weak American currency overseas and sustained inflow of foreign funds in the domestic capital markets. The local currency also found support from positive equity markets, however, volatile crude oil prices capped its rally, forex traders said. At the interbank foreign exchange, the domestic currency opened at 82.82 and gained further to trade at 82.74 against the greenback, climbing 9 paise from its previous close. On Wednesday, the rupee settled 7 paise higher at 82.83 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, declined by 0.07 per cent to 103.24. The low level of dollar index was attributed to the US payroll data released on Wednesday, which showed lower-than-expected job growth in February. Also, the indication of dovish monetary policy moves by Federal Reserve chairman Jerome Powell

The rupee depreciated 5 paise to 83.01 against the US dollar in early trade on Friday, tracking a strong American currency and elevated crude oil prices in the international market. Forex traders said a negative trend in domestic equities and foreign fund inflows weighed on investor sentiments. At the interbank foreign exchange, the rupee opened at 82.96 against the dollar and touched an early low of 83.01 and a high of 82.95 in initial trade. On Thursday, the rupee settled on a flat note at 82.96 against the US dollar, after the Reserve Bank decided to keep the key policy rate unchanged for the sixth time in a row to maintain a tight vigil on inflation. "The RBI kept rates on hold in its MPC meeting held on Thursday and also did not give any indication of when it will be able to cut rates prompting a fall in equity markets. It said that it cannot give any forward guidance leaving everyone guessing on the timing of the rate cycle," Anil Kumar Bhansali, Head of Treasury and Executiv

Gold reserves rose by $446 million in the previous week, whereas Special Drawing Rights (SDRs) increased by $135 million