23 March 2024 – The latest RBI data shows India’s currency reserves rose $6.396 billion to $642.492 billion for the week ended March 15. The prior reporting week, reserves rose $10.47 billion to $636.095 billion. The FX reserve hit a record $645 billion in October 2021. Since last year, the central bank has utilized its reserves to preserve the currency under global challenges.
Foreign currency assets, a significant component of reserves, rose $6.034 billion to $568.386 billion for the week ending March 15. In dollar terms, foreign currency assets include the appreciation or depreciation of non-US currencies like the euro, pound, and yen in foreign exchange reserves.
The RBI reported that gold reserves rose $425 million to $51.14 billion this week, SDRs rose $65 million to $18.276 billion, and India’s IMF reserve position fell $129 million to $4.689 billion in the reporting period. Due to a rising US dollar versus key crosses abroad, the rupee is at an all-time low of 83.61.
Conclusion
Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, stated, “Low dollar-rupee volumes of 1.50% have maintained the dollar bid and contributed to the breakout. In the previous three days, outflows have absorbed inflows. The ensuing week should see 83.25/83.75.
