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 reserves had touched an all-time high of USD 426 billion in April 2018.
Meanwhile, the United States, President Donald Trump on Sunday accused China of breaking the negotiated trade deal draft and indicated toughening of his stand against China in a series of tweets.
"The rupee is under pressure as the trade tension escalated between US and China. Global markets are also under pressure hence the rupee is weakening. In coming sessions, volatility is expected to rise in the rupee as the date of election results approaches," said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers.
China has threatened to take retaliatory measures if US President Donald Trump raises tariffs on USD 200 billion worth of goods ahead of the crucial 11th round of talks aimed at ending the trade war between the world's two largest economies.
Foreign fund outflows restricted the rupee upmove.