India's forex reserves drop again for week ending on March 10

India's forex reserves drop again for week ending on March 10

The $2.4 billion drop to $560 billion comes after forex reserves went up in the previous week, after a four-week slide.

FPJ Web DeskUpdated: Friday, March 17, 2023, 08:42 PM IST
article-image

As the Rupee is gains strength against the US dollar, most would expect lesser pressure on the Reserve Bank of India to sell off foreign assets. But even as the local currency is closer to going international, India's foreign exchange reserves have plunged in the week that ended on March 10, 2023.

Another dip after a breather as non-US currencies flow out

The $2.4 billion drop to $560 billion comes after forex reserves went up in the previous week, after a four-week slide.

Foreign currencies, which form the bulk of forex assets, went down by $2.2 billion owing to depreciation in Euro, Pound and Yen, apart from US dollar, and hit $494.86 billion.

What does the coming week look like?

With a decline in demand for gold, the yellow metal's value in India's forex reserves went down by $110 million to $41.92 billion.

As markets remain volatile following a pandemic, geopolitical tensions and a banking crisis, RBI had to spend $115 billion from the reserves to break the Rupee's fall.

But the decline in forex reserves came before the banking sector was hit by the SVB crisis, and the RBI is now expected to tighten spending with risks of the situation worsening.

RECENT STORIES

2024 KTM 250 Duke and 200 Duke Add Striking New Colour Variants in India

2024 KTM 250 Duke and 200 Duke Add Striking New Colour Variants in India

'Janta Hai Tera Baap Kaun Hai': PM Modi Lauds Zomato Boss Deepinder Goyal, Says Surname Does Not...

'Janta Hai Tera Baap Kaun Hai': PM Modi Lauds Zomato Boss Deepinder Goyal, Says Surname Does Not...

Authorities Sound Alarm As 90% Of F&O Traders Lose Money; Are Mutual Funds Safer?

Authorities Sound Alarm As 90% Of F&O Traders Lose Money; Are Mutual Funds Safer?

Check out the top 5 air coolers available in India

Check out the top 5 air coolers available in India

Mahindra Thar Unveils Stunning New Deep Forest Colour Option in India

Mahindra Thar Unveils Stunning New Deep Forest Colour Option in India