India’s forex reserves saw steepest weekly decline in over 11 months
India's foreign exchange reserves declined by USD 8.319 billion to USD 566.948 billion in the week ending on February 10, according to the Reserve Bank of India's latest data.
India's foreign exchange reserves declined by USD 8.319 billion to USD 566.948 billion in the week ending on February 10, according to the Reserve Bank of India's latest data.
The fall for the second straight week was mainly due to a decline in the foreign currency assets, which dropped $7.1 billion to $500.59 billion.
The foreign exchange reserves held by the State Bank of Pakistan (SBP) have plunged to precarious levels as the cash-strapped nation desperately seeks to revive the stalled bailout programme of the International Monetary Fund (IMF), local media reported.
Textile millers and garment exporters also bought raw materials in additional quantities thanks to a brighter outlook of the garment trade because of the global recovery from the severe fallout of Covid-19.
The Government has been promoting the with the aim to enhance India's energy security, reduce import dependency on fuel, save foreign exchange and address environmental issues.
The domestic currency, however, could not hold on to the gains and fell to 69.09. The rupee finally settled at 68.94 a dollar, higher by 9 paise over its previous close.
Forex dealers said the selling of the American currency by exporters and gain in other Asian currencies also supported the rupee.
The rupee had settled at 69.65 against the US dollar Monday.
However, gains in domestic equities supported the rupee and capped its losses to some extent, they added.
Forex traders said investors welcomed the RBI policy decision as this would help to boost the slowing economy.
