• HDFC securities
• 26 Sep 2018
• Knowledge Centre

India’s foreign exchange reserves witnessed a dip as the Reserve Bank of India (RBI) continued to intervene in the currency markets to cushion the Rupee’s fall. The domestic currency has depreciated more than 12% this year.

 

Forex reserves fell to US$399.3 bn as on 7th September 2018, a drop of US$819 mn over the previous week. Foreign currency assets, the largest segment of reserves, fell US$887 mn in a week, revealed data released by the RBI. The reserves have fallen from a peak of US$426 bn in April 2018 to just below US$400 bn now.

 

Much of this has been on account of Dollar sales intended to slow down the depreciation in the Rupee.