INSUBCONTINENT EXCLUSIVE:
The reserves are at their lowest level since January 6, 2023
$500.59 billion.
In the week ended February 10, the rupee shed 0.8 per cent to close at 82.51 per dollar as unexpectedly strong US jobs
data sparked worries of the Federal Reserve raising interest rates for longer than was earlier anticipated.
Higher US interest rates lead
beyond 83.00 and has been selling dollars from 82.70 levels which has impacted the reserves
higher than expected inflation in January, have further strengthened fears of the Fed continuing with monetary tightening for longer
The Fed has raised interest rates by a total of 450 bps since March 2022, leading to sharp gains in the US dollar.
Dealers said that the
RBI had likely been intervening through dollar sales in the non-deliverable forwards market over the past week in order to rein in excessive
We believe the recent resilience in the rupee may not last long as the Fed members and recent data pointing higher rates for longer time
Following a decline of $100 billion in its reserves from February to September of 2022, the RBI has over the last three months been
replenishing its foreign exchange reserves.
From June to October of 2022, the RBI was a net seller of US dollars in the currency market as
The foreign exchange reserves increased by $28.9 billion since September-end to $561.6 billion as on January 6.
Reserves worth $576.8
billion as on January 27, 2023, cover 9.4 months of projected imports for the current financial year, the RBI staff said in the central
