For the second week in a row, foreign exchange reserves increased, reaching a nearly three-month high of $597.9 billion for the week ending November 24. In the week ending November 24, reserves increased by $2.5 billion, following a $5.1 billion increase in the week ending November 17.
Both the appreciation or depreciation of foreign assets kept in reserves and Reserve Bank of India (RBI) action are responsible for changes in foreign currency assets. Foreign exchange holdings increased by $.2.1 billion to $528.5 billion.
In the week ending November 24, gold reserves increased by $296 million to $46.3 billion. From $18.2 billion to $87 million, special drawing privileges increased.
The IMF’s reserve position increased by $14 million to $4.8 billion. In the week ending November 24, the rupee dropped 0.13% to 83.38. It increased 0.12% on December 1 to 83.30. Due to purchases made in the capital markets by FIIs and DIIs, the rupee ended the day at 83.29.
The rupee managed to hold onto its 83.40 level and get closer to 83.25 thanks to a decrease in oil prices during the past day. The rupee was noted to be between 83.20 and 83.40, indicating a range of volatility in the overall trend.
