Updated February 23rd, 2024 at 18:36 IST

India's forex reserves drop to 2-month low at $616.10 bn

Changes in foreign currency assets are influenced by the RBI's intervention and fluctuations in the value of foreign assets held in reserves.

Reported by: Business Desk
India's forex reserves drop to 2-month low at $616.10 bn | Image:Freepik
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Forex reserves drop: India's foreign exchange reserves fell for the second consecutive week, reaching a two-month low of $616.10 billion as of February 16, according to data from the central bank released on Friday.

The reserves declined by $1.13 billion during the reporting week, following a drop of $5.3 billion in the previous week.

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The Reserve Bank of India (RBI) actively intervenes in the foreign exchange market to stabilise the rupee and prevent excessive volatility.

The RBI's intervention and variations in the value of foreign assets kept in reserves have an impact on changes in foreign currency assets. These reserves also include its tranche position in the International Monetary Fund (IMF).

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During the week in review, the rupee remained relatively stable against the dollar, trading in a narrow range between 82.9725 and 83.1150.

The domestic currency closed at 82.9375 on Friday, marking a 0.1 per cent increase for the week.

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(with Reuters inputs)

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Published February 23rd, 2024 at 18:36 IST