India's forex reserves near $500 bn, but RBI won't let rupee rise: Experts

Analysts say the central bank is enhancing reserves to guard against a likely downgrade in India's credit rating or to ensure a bigger transfer of surplus to the revenue-starved government

India’s foreign-exchange reserves are at a record and approaching the $500 billion mark, and yet, the rupee has been Asia’s worst performer over the past three months.

That’s because the Reserve Bank of India (RBI) doesn’t seem to be in the mood to give the currency a free run even as most of its regional peers have rebounded from the virus-induced selloff. Indonesia’s rupiah, the rupee’s high-yielding counterpart, is leading the gains.

Analysts say the central bank is enhancing reserves to guard against a likely downgrade in India’s credit rating or to ensure a bigger transfer of surplus to the