Mumbai, Oct 27 (SocialNews.XYZ) India's foreign exchange reserves fell by $2.36 billion to $583.53 billion during the week ended October 20, according to RBI data released on Friday.
In the preceding week the country’s forex reserves had increased by $1.15 billion, reversing a continuous decline over the previous five weeks.
The country’s foreign exchange reserves had fallen by $14.166 billion to a five-month low of $584.74 billion for the week ended October 6. With the fresh decline, the forex reserves have fallen even further.
This gives cause for concern as the RBI uses the country’s forex reserves to stabilise the rupee when it turns volatile.
The RBI intervenes in the spot and forwards markets by releasing more dollars to prevent the rupee from going into a free fall when it comes under pressure.
Any sharp decline in the country’s forex kitty leaves the RBI less headroom to intervene in the market to stabilise the rupee which could weaken the Indian currency.
Source: IANS
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.
