Business Standard

Drop in India's forex reserves worrisome as inflows slow down: Economists

India's forex reserves declined to $553.1 bn in the week ended Sept. 2, their lowest since Oct. 2020 and down by $8 bn from the previous week, RBI data showed on Friday

foreign inflows
Premium

Foreign investors have bought around $700 million worth of Indian equities so far this month, after having poured in $6.5 billion in August.

Reuters Mumbai
India's foreign exchange reserves dropping to a two-year low is concerning for the economy as the pace of foreign inflows into the country's markets eases amid global monetary policy tightening, economists said on Monday.

India's FX reserves declined to $553.1 billion in the week ended Sept. 2, their lowest since Oct. 2020 and down by $8 billion from the previous week, Reserve Bank of India (RBI) data showed on Friday.

It was the biggest drawdown in reserves since early July, which analysts attributed to the central bank proactively intervening in currency markets to help the rupee after it

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in