• Source:JND

Forex Reserve Down: India's foreign exchange reserves fell by $7.052 billion to $709.759 billion this week, continuing the losing streak for the second consecutive week, according to the latest data released by the RBI. The decline came amid disruptions in the energy supply chain due to ongoing geopolitical tensions in West Asia. However, the gold reserve rose.

The rise in the dollar index has weakened the Indian rupee, weighing on India's export bill.

Forex Was At All-Time High In February

Earlier last week, the total reserves had fallen by $11.683 billion to $716.81 billion in the last reporting week. In the week ended February 27, the forex was up by $4.885 billion to an all-time high of $728.494 billion. Foreign currency assets, a major component of the reserves, fell by $7.678 billion to $555.568 billion in the week ended March 13, data released by the central bank showed.

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When expressed in dollars, foreign currency assets also include the impact of appreciation or depreciation in the value of non-US currencies held in foreign currency reserves, such as the euro, pound and yen.

Gold Reserve Rises

Gold reserves rose by $664 million to $130.681 billion during the week, the RBI said. Special Drawing Rights (SDRs) declined by $23 million to $18.697 billion, the Supreme Bank said. India's reserve position with the IMF also fell by $15 million to $4.814 billion during the week under review, according to RBI data.

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Rupee Hits All-Time Low

The Rupee fell 82 paise, or about 1 per cent, to an all-time low of 93.71 against the US dollar. The fall comes amid continued outflows of foreign capital and rising geopolitical tensions, as crude oil prices rose sharply. According to experts, the Indian rupee is under intense pressure due to rising crude oil prices and risk aversion, undermining investor sentiment.

Disclaimer: This story has been written with inputs from the agency feed (PTI).


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