Page 3 - Forex

RBI conducts forex swap worth $10 billion to inject long-term liquidity

The Reserve Bank on Friday conducted US dollar-rupee swap worth USD 10 billion for injecting long-term liquidity in the system, with the auction eliciting robust demand. The settlement of auction will take place on March 4 and March 6. The USD/INR Buy/Sell swap auction for a tenor of 3 years was oversubscribed 1.62 times. The Reserve Bank of India (RBI) said it received 244 bids during the auction and 161 of them were accepted for amount totalling USD 10.06 billion. The auction comes in the backdrop of rupee trading at 87.46 against the US dollar amid global uncertainties. The swap was in the nature of a simple buy/sell foreign exchange swap from the Reserve Bank side. A bank shall sell US dollars to the Reserve Bank and simultaneously agree to buy the same amount of US dollars at the end of the swap period. While announcing the swap auction last week, the RBI had said: "In order to meet the durable liquidity needs of the system, the Reserve Bank has decided to inject Rupee liqu

Weighted moves: RBI's shock therapy restores stability to the forex market

The Indian currency's rapid fall from 85 to 86 in just 16 days, and from 86 to 87 in another 15 days, highlights the volatility in the foreign-exchange market during those months

RBI's forex forward book climbed to near 4-year high on rupee angst

RBI buys or sells dollars in the FX forward market when it does not want its spot intervention to affect domestic liquidity and/or to maintain headline forex reserves

Banks, importers seen lapping up India central bank's $5 billion FX swap

Central bank will conduct a 6-month dollar/rupee buy-sell swap, one of its many planned measures aimed at injecting liquidity worth about Rs 1.5 trillion ($17.33 billion) into the banking system

Rupee rises 18 paise to 86.26 against US dollar in early trade today

Rupee appreciated 18 paise to 86.26 against the US dollar in morning trade on Friday, supported by positive domestic equities and soft American currency index. Forex traders said weak crude oil prices and positive domestic markets supported the local unit, while sustained foreign fund outflows weighed on the local unit. Traders further noted that the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee's trajectory. At the interbank foreign exchange, the rupee opened at 86.31 and touched 86.26 against the US dollar, registering a rise of 18 paise from its previous close. The local unit also touched 86.33 against the US dollar initial trade. On Thursday, the rupee declined 9 paise to settle at 86.44 against the US dollar. The rupee has shown signs of resilience, appreciating over the past two trading sessions due to a weakening dollar. Moreover, on a positive note, upcoming inflows from fundraising activities by IREDA of USD 570 million are expec

Hyundai India says localisation saved it Rs 5,700 cr in forex since 2019

Automaker will assemble EV battery packs at new facility in Chennai, says senior executie

Forex interventions proven to mitigate capital flow volatility: RBI report

It examined the effectiveness of the RBI's forex interventions and found that the primary driver of exchange rate volatility in India is the fluctuation in portfolio flows caused by global spillovers

RBI sold record $20.2 billion in November to back rupee amid FPI outflows

Forward book dollar deficit ballooned to $58.9 bn

Is foreign exchange rate stability desirable? Not really, data shows

RBI showing greater tolerance for exchange rate under Governor Malhotra

India's forex kitty declines $5.69 bn to $634.58 bn, shows RBI data

India's forex reserves dropped by USD 5.693 billion to USD 634.585 billion in the week ended January 3, the Reserve Bank of India said on Friday. In the previous reporting week, the overall kitty had declined by USD 4.112 billion to USD 640.279 billion. The reserves have been on a declining trend for the last few weeks, and the drop has been attributed to revaluation along with forex market interventions by RBI to help reduce volatility in the rupee. The forex reserves had increased to an all-time high of USD 704.885 billion in end-September. For the week ended January 3, foreign currency assets, a major component of the reserves, decreased by USD 6.441 billion to USD 545.48 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves increased by USD 824 million to USD 67.092 billion during the

Banks urge RBI to inject liquidity via foreign-exchange swaps amid crunch

The higher financing costs are posing a challenge for the RBI to support an economy that's witnessing a slowdown in manufacturing activities

RBI should rethink forex strategy, loosen hold on rupee in 2025: Economists

The rupee's overvaluation relative to its trading partners makes India's exports more expensive. This is the most overvalued the rupee has been since 2004, RBI data showed

Russia's CBRF to resume regular forex operations under budget rule in 2025

Under Russia's budget rule, the finance ministry sells foreign currency from its rainy day National Wealth Fund (NWF) to make up for any shortfall in revenue from oil and gas exports

RBI net sells $9.2 bn in October, highest monthly sale since September 2022

The rupee had breached the 84 per dollar mark on October 11 of the current year

Forex reserves drop $2 bn to $652.86 bn, a nearly six-month low: RBI data

India's forex reserves dropped by USD 1.988 billion to USD 652.869 billion for the week ended December 13, the RBI said on Friday. In the previous reporting week, the overall reserves had dropped by USD 3.235 billion to USD 654.857 billion. The reserves have been declining for the last few weeks, and the drop has been attributed to revaluation, along with forex market interventions by the RBI to help reduce volatilities in the rupee. The forex reserves had increased to an all-time high of USD 704.885 billion in September. For the week ended December 13, foreign currency assets, a major component of the reserves, decreased by USD 3.047 billion to USD 562.576 billion, the data released on Friday showed. Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves increased by USD 1.121 billion to USD 68.056 billion during the week, the RBI

Domestic, global headwinds challenge RBI's forex intervention efforts

India's forex reserves are at a five-month low after the RBI sold $38 billion, per IDFC FIRST Bank's estimate, between October and the first week of December

Forex reserves drop by $3.23 bn to $654.85 bn for week ended on Dec 6

India's forex reserves dropped by USD 3.235 billion to USD 654.857 billion for the week ended December 6, the RBI said on Friday. In the previous reporting week, the reserves had increased by USD 1.51 billion to USD 658.091 billion, ending a multi-week decline in the overall kitty. The forex reserves had increased to an all-time high of USD 704.885 billion in end-September. For the week ended December 6, foreign currency assets, a major component of the reserves, decreased by USD 3.228 billion to USD 565.623 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves decreased by USD 43 million to USD 66.936 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by USD 25 million to USD 18.031 billion, the apex bank said. India's reserve position with the IMF was also

Forex reserves up $1.51 bn to $658.091 bn; end consecutive weeks of decline

India's forex reserves increased by USD 1.51 billion to USD 658.091 billion for the week ended November 29, the RBI said on Friday. The overall reserves had dropped by USD 1.31 billion to USD 656.582 billion in the previous reporting week. The kitty has witnessed a declining trend in the recent past and had dropped by a record USD 17.761 billion in the week prior to the last. The forex reserves had increased to an all-time high of USD 704.885 billion in end-September. For the week ended November 29, foreign currency assets, a major component of the reserves, increased by USD 2.061 billion to USD 568.852 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves decreased by USD 595 billion to USD 66.979 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by USD 22

Forex reserves drop $1.31 bn to $656.5 bn as of November 22, says RBI

India's forex reserves dropped USD 1.31 billion to USD 656.582 billion for the week ended November 22, the Reserve Bank of India (RBI) said. The kitty had dropped a record USD 17.761 billion to USD 657.892 billion in the previous reporting week ending November 15. The reserves, which had hit an all-time high of USD 704.885 billion in end-September, have been declining for multiple weeks, at a time when the rupee has also been under pressure. For the week ended November 22, foreign currency assets -- a major component of the reserves -- decreased USD 3.043 billion to USD 566.791 billion, the data, which was released on Friday, showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves. Gold reserves increased USD 1.828 billion to USD 67.573 billion during the week, the RBI said. The special drawing rights (SDRs) were down USD 79 million to USD

Forex reserves see sharpest weekly drop on record, hit over four-month low

The reserves fell by $17.8 billion in the week of Nov. 15 - the most since available data starting 1998 - to $657.89 billion, data from the Reserve Bank of India (RBI) showed on Friday