Latest Updates on India’s Forex Reserves: Stay Informed
Are you interested in getting all the India Forex Reserves news and all the latest professional analyses? Would you like to be in touch with all the newest information that emerges in the market regarding this specific topic?
If so, we’re here to help you be on top of the latest India forex reserves news! As of June 19 2024, we’d like to point out some of the most important news that each individual needs to know!
There is a lot of news regarding foreign currency reserves, but we’ll focus on what India’s Forex Reserves are today!
Let’s see what the India Forex Reserve’s latest news is!
1. In early trade, Rupee strengthens by 6 paise to 83.37 against the US Dollar
The rupee currency has continued its upward trend for the second consecutive session. It was appreciated by 6 paise to 83.37 against the US dollar in early trading on Wednesday, supported by ongoing foreign capital inflows and robust equity markets.
Nonetheless, according to professional Forex traders, the local currency has found resistance due to a much stronger US dollar and rising crude oil prices abroad.
The local currency opened strong at 83.39 at the interbank foreign exchange market and advanced further to 83.34 against the greenback.
On the previous Tuesday, the rupee currency settled 12 paise higher at 83.43 against the US dollar. The dollar index, which calculates the dollar’s strength against six currencies, was up by 0.02 per cent at 104.90.
2. Shaktikanta Das supports annual gold purchases to diversify forex reserves
Shaktikanta Das, the popular Governor of the Reserve Bank of India (RBI), highlighted that the RBI has historically taken proactive measures when suspecting a real estate bubble.
He pointed out that the economy and the real estate sector are growing, and the RBI has dealt with similar expansions.
The Reserve Bank of India (RBI) typically works to diversify reserve assets to tackle international trade issues. To support this, Das advocates for buying gold annually.
Also, remember that the RBI has considered consistent weeks of economic growth. In other words, it is considered to reinforce their strategic actions.
What did he point out?
Focusing on the financial markets, Das pointed out that the market capitalization has reached $5 trillion, surpassing the real economy’s $4 trillion. This big growth in the financial economy makes us wonder about its effects.
He said hat the current economy and real estate sector are growing simultaneously. What is also interesting to note is that he mentioned that the RBI has previously handled similar expansions. Last Tuesday, the Rupee ended 12 paise higher at 83.43 against the US dollar.
As a regulator, in this case, Shaktikanta Das warned against making any particular conclusions too soon.
3. Forex reserves have managed to hit a record $655.8 billion as of June 7.
According to central bank data, Forex Reserves of India’s Reserve Bank has reached a new peak of $655.8 billion for the second consecutive week ending June 7.
The total reserves have increased by $4.3 billion. It happened mostly due to a $3.7 billion rise in foreign currency assets, which brought the total to $576.3 billion. It’s interesting to note that the reserves hit a previous record of $651.5 billion just a week before that.
This boost in foreign exchange reserves was likely driven by the RBI’s dollar purchases following the Rupee’s appreciation last week.
4. India’s forex reserves increased by $4.3 billion, reaching a new record of $655.8 billion as of June 7.
As of June 7, India’s forex reserves have hit a new record high of $655.8 billion, up $4.3 billion, according to the Reserve Bank of India data. This surpasses the previous peak of $651.5 billion on May 31, when reserves had increased by $4.8 billion.
According to the RBI’s Weekly Statistical Supplement, the famous foreign currency assets (FCAs) rose by $3.77 billion to $576.3 billion. These assets reflect the impact of fluctuations in non-US currencies like the euro, pound, and yen held in India’s reserves.
The increase in forex, in this case, reserves, is probably a result of the RBI’s market interventions. It purchases dollars to strengthen all the necessary reserves.
5. Rupee drops by 6 paise to 83.54 against the US dollar in early trading
The Rupee weakened by 6 paise to 83.54 against the US dollar on Thursday, pressured by the overall strength of the American currency in the global market and rising crude oil prices. Forex traders noted that the domestic currency also struggled due to weak macroeconomic data at home.
In early trading at the interbank foreign exchange market, the Rupee opened at 83.52 and fell further to 83.54 against the dollar, marking a 6-paise decline from its previous close.
On the prior Wednesday, the Rupee strengthened by 11 paise, closing at 83.48 against the US dollar. However, the depreciation in the Rupee continued on Thursday, falling by 6 paise to 83.54 against the greenback.
Hitting a fantastic record high
In the meantime, India’s forex reserves hit a fantastic record high. It showed the major central bank’s efforts to control foreign currency such as the US dollar, British pound, Japanese Yen, Euro, and many other currency fluctuations.
The dollar index, responsible for tracking the US dollar’s strength against six major currencies, rose by 0.14 per cent to 104.78.
Bottom line
These are just some of the latest updates on India’s forex reserves that you need to know. It’s crucial to stay informed daily, as the market is very volatile, and changes can occur rapidly.
The Reserve Bank of India manages the market through liquidity management, similar to how other countries hold various reserves to stabilize their economies and address international trade issues.
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