India’s forex reserves come off seven-week highs

India’s foreign exchange reserves snapped a two-week gaining run and fell to $590.32 billion as of Nov. 10, easing from the seven-week highs, data from the Reserve Bank of India (RBI) showed on Friday.

Reserves contracted by $460 million in the past week, following a total increase of $7.3 billion over the preceding two weeks.

Fluctuations in foreign currency reserves are influenced by the RBI’s intervention and the rise or fall in value of foreign assets.

Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.

India’s forex reserves rise to one-month high

India’s external sector has remained viable, with a modest current account deficit (CAD) financed by resilient capital flows, one of the least volatile currencies in the world and healthy foreign exchange reserves, the RBI said in its latest monthly bulletin released on Thursday.

For the week the forex reserves data pertains, the rupee had hit a record low of 83.42 against the dollar.

The currency settled at 83.27 on Friday, little changed for the week.

FOREIGN EXCHANGE RESERVES (in million U.S. dollars)
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                              Nov 10       Nov 03
                               2023         2023
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Foreign currency assets      522,004      521,896
Gold                          45,515       46,123
SDRs                          18,011       17,975
Reserve Tranche Position       4,791        4,789
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Total                        590,321      590,783
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