India’s forex reserves jumped by $2.975 billion to $619.072 billion for the week ended February 23, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had dropped by $1.132 billion to $616.097 billion.

For the week ending February 23, the foreign currency assets, a major component of the reserves, increased by $2.405 billion to $548.188 billion.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-U.S. units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves increased by $472 million to $47.848 088 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were up by $89 million to $18.197 billion, the apex bank said.

India’s reserve position with the IMF was up by $9 million to $4.839 billion in the reporting week, the apex bank data showed.

India’s forex reserves hit an all-time high of $645 billion in October 2021.

A man at a foreign exchange counts Indian currency as a customer, unseen, exchanges U.S. dollars in New Delhi. File photo
| Photo Credit: AP

The rupee declined marginally to 83.01 against the US dollar in early trade on Tuesday, February 13,2024, amid a muted trend in domestic equities.

A stronger American currency and elevated crude oil prices also dented sentiments.

At the interbank foreign exchange, the rupee opened at 83.00 against the dollar, and touched an early high of 82.98 and a low of 83.01 in initial trade.

On Monday, the rupee appreciated 7 paise to close at 83.00 against the US dollar.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the rupee is expected to remain range bound with a narrow range of 82.95 to 83.05.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent higher at 104.23.

Brent crude futures, the global oil benchmark, rose 0.09 per cent to USD 82.07 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 67.81 points or 0.10 per cent lower at 71,004.68 points. The broader NSE Nifty declined 44.60 points or 0.21 per cent to 21,571.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 126.60 crore, according to exchange data.

India’s industrial production growth slowed to 3.8 per cent in December 2023, mainly due to poor performance of mining and power generation segments.

Meanwhile, retail inflation declined to a three-month low of 5.1 per cent in January, mainly due to subdued prices of vegetables, fruits and other food items.

The rupee appreciated 2 paise to 83.03 against the US dollar in early trade on Wednesday, February 7, 2024, supported by positive domestic equities.

Moreover, the weakness of the American currency in the overseas market also aided sentiments.

At the interbank foreign exchange, the rupee opened at 83.03 against the dollar, registering a gain of 2 paise over its previous close.

On Tuesday, the rupee declined marginally by 2 paise to close at 83.05 against the US dollar.

Forex traders said the rupee is trading in a narrow range as factors such as capital inflows and stable domestic economic data supported sentiments, while hawkish FED, strong US data and global tensions weighed on the local unit.

Moreover, investors were cautious as the Reserve Bank’s monetary policy committee (MPC), the six-member rate-setting panel, began the deliberation on Tuesday. The central bank will announce the key interest rate decision on Thursday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11 per cent lower at 104.09.

Brent crude futures, the global oil benchmark, rose 0.17 per cent to USD 78.72 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 336.54 points or 0.47 per cent higher at 72,522.63 points. The broader NSE Nifty advanced 116.05 points or 0.53 per cent to 22,045.45 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth ₹92.52 crore, according to exchange data.

The Rupee depreciated eight paise to settle at 83.06 (provisional) against the U.S. dollar on February 5, as strengthening American currency overseas and negative sentiment in the domestic equity markets weighed on the local unit.

“However, the downward trend in the global crude oil prices supported the domestic unit and restricted its decline,” forex traders said.

At the interbank foreign exchange, the Rupee opened at 83.03 against the dollar and traded in the narrow range of 83 to 83.07. The local unit finally settled at 83.06 (provisional) against the greenback, down eight paise over its previous close. The Rupee settled flat at 82.98 against the dollar on February 2.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.33% higher at 104.12.

Analysts said the U.S. dollar gained strength after macroeconomic data showed steady growth in the world’s largest economy, while investors were keeping a close watch on the Reserve Bank of India’s monetary policy decision to be announced later this week.

Brent crude futures, the global oil benchmark, declined 0.14% to $77.22 per barrel. On the domestic equity market front, Sensex fell 354.21 points or 0.49% to 71,731.42 points. The Nifty dipped 82.10 points or 0.38% to 21,771.70 points.

A monthly survey released on Monday showed India’s services sector growth rose to a six-month high in January as new business expanded at a faster pace amid buoyant demand from domestic and external clients.

The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 61.8 in January, up from 59 in December. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth ₹70.69 crore, according to exchange data.

“India’s forex reserves increased $591 million to $616.733 billion for the week ended January 26,” the Reserve Bank of India said on February 2.

The rupee continued its downward movement for the second straight day and fell by 8 paise to 83.21 against the US dollar in early trade on Tuesday, September 26, 2023 amid massive selling by foreign equity investors and a firm American currency.

Subdued equity market sentiment and elevated level of crude oil prices ¬ hovering above USD 92 a barrel ¬ also put downside pressure on the Indian currency, forex traders said.

At the interbank foreign exchange, the domestic unit opened at 83.19 and hit the lowest level of 83.23 against the greenback. It later traded at 83.21 against the dollar, registering a fall of 8 paise from its previous close.

On Monday, the rupee declined by 19 paise to close at 83.13 against the dollar.

Analysts attributed the downward movement of the rupee to a strengthening dollar amid increased month-end demand of the American currency by importers and rising US Treasury yield.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05 per cent to 106.07.

Brent crude futures, the global oil benchmark, was trading 0.45 per cent to USD 92.87 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 15.76 points or 0.02 per cent lower at 66,007.93 points. The broader NSE Nifty declined 10.55 points or 0.05 per cent to 19,664.00.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth ₹2,333.03 crore, according to exchange data.

In the previous reporting week, the overall reserves had risen by $708 million to $602.161 billion.
| Photo Credit: REUTERS

India’s forex reserves dropped by $7.273 billion to $594.888 billion for the week ended August 18, the Reserve Bank said on Friday.

In the previous reporting week, the overall reserves had risen by $708 million to $602.161 billion.

The country’s forex kitty had reached an all-time high of $645 billion in October 2021. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended August 18, the foreign currency assets, a major component of the reserves, decreased by $6.613 billion to $527.786 billion, according to the Weekly Statistical Supplement released by the RBI.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-U.S. units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves were down by $515 million to $43.824 billion, the RBI said.

The Special Drawing Rights (SDRs) were down by $119 million to $18.205 billion, the apex bank said.

The country’s reserve position with the IMF was also down by $25 million to $5.072 billion in the reporting week, the apex bank data showed.