Despite the spectre of a US Fed interest rate hike adding weight to the US dollar against global currencies, the Rupee made gains thanks to an inflow of foreign investments. As pressure on the local currency went down, the Reserve Bank of India was also able to shore up its foreign reserves, since it didn't need to sell foreign currency to strike a balance. As a result India's foreign exchange reserves have gone up for the first time after a month, in the week that ended on March 3, 2023.
Gold glitters alongside currencies
The reserves reached $562.40 billion, as they gained $1.46 billion to bounce back from a loss of $15.8 billion in the previous four weeks. Without having to sell foreign assets to break the Rupee's fall, the RBI added $1.18 billion to its foreign currency pile, while gold was also shining brighter by $282 million. The RBI has also taken necessary steps to tackle the slight depreciation of the Rupee, while it also made gains.
RBI on forex charges
The RBI has also cracked its whip against high charges for forex transactions at banks and by authorised dealers. The regulator slammed the institutions for lack of transparency, while the RBI has been trying to promote Rupee as an international currency.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
