In the week ending July 28, foreign exchange reserves decreased by $3.2 billion to $603.9 billion, according to the most recent information from the Reserve Bank of India (RBI). After reaching their greatest level in more than a year during the week ending July 14, reserves have decreased for the second consecutive week.
In an effort to curb excessive rupee volatility, RBI makes purchases or sales of dollars on the foreign exchange market. The value of foreign assets decreased by $2.5 billion to $535.3 billion. To around $45 billion, gold reserves decreased by $710 million.
To $18.4 billion, special drawing rights decreased by $29 million. In the week ending July 28, the reserve position of the International Monetary Fund decreased by $11 million to $5.2 billion.
The rupee dropped 0.36 percent to 82.26 in the week ending July 28, 2023. On Friday, it dropped to 82.84, down 0.13%. “The US dollar was underpinned by positive statistics on jobless claims and non-manufacturing prices, allowing the Federal Reserve room to consider raising interest rates. The rupee was under pressure recently due to the recent increase in crude oil prices,” according to Jateen Trivedi, VP research analyst at LKP Securities.
“In the near future, the rupee may see higher positive levels against the dollar in the range of 82.50 to 83.15,” he added.
