Mumbai: India’s forex and gold reserves declined for the week ended November 15, the Reserve Bank of India (RBI) said. The foreign exchange reserves dropped by USD 17.761 billion to USD 657.892 billion for the week ended 15th November. It may be noted that the foreign currency reserves has been declining for multiple week now.
The RBI data mentioned that India’s overall reserves dropped by USD 6.477 billion to USD 675.653 billion in the previous reporting week ended November 8, 2024. India’s forex reserves had hit an all-time high of USD 704.885 billion in end-September.
Why India’s forex reserves are declining?
Meanwhile, the RBI data showed that Gold reserves also decreased by USD 2.068 billion to USD 65.746 billion during the week ending November 15.
India’s foreign exchange reserves fall is being attributed to a stronger US dollar. The American currency has been going North following the US presidential election verdict. Reports suggest that the central reportedly sold dollars in the market to support the local currency.
The apex bank said Special Drawing Rights (SDRs) also slipped and went down by USD 94 million to USD 18.064 billion. India’s reserve position with the International Monetary Fund (IMF) was also down by USD 51 million to USD 4.247 billion in the reporting week.
Rupee vs US dollar
In a sigh of relief, the Rupee recovered from its all-time low level and gained 9 paise to end at 84.41 against the US dollar on November 22. The Indian currency’s rise was supported by positive domestic equities. Forex traders were of the view that the Rupee was trading in a narrow range as the US dollar strengthened in the overseas market and Brent oil continued to increase due to the ongoing Ukraine-Russia conflict.
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