India’s currency exchange rate rose $5.929 billion to $595.067 billion in the week ending June 2, the Reserve Bank said on Friday. Reserves had fallen for two consecutive weeks, falling $4.34 billion to $589.14 billion in the previous reporting week.
It can be noted that in October 2021, the country’s forex cat had reached an all-time high of $645 billion. Reserves have dwindled as the central bank stakes the pot to defend the rupee amid pressures mainly caused by global developments.
For the week ending June 2, foreign currency assets, a major component of reserves, rose $5.27 billion to $526.201 billion, according to the Weekly Statistical Supplement released by the RBI on Friday.
In dollar terms, foreign currency assets include the effect of appreciation or depreciation of non-US units such as the euro, pound and yen held in foreign exchange reserves.
Gold reserves rose $655 million to $45.557 billion, the RBI said. Special Drawing Rights (SDRs) fell $6 million to $18.186 billion, the top bank said.
The country’s reserve position with the IMF was up $10 million in the reporting week to $5.123 billion, central bank data showed.
Anil Kumar Bhansali, Head (Treasury) and Executive Director of Finrex Treasury Advisors LLP, said: “FPIs continued to invest in the stock market as they invested $2.9 billion in the past 15 days with a total investment of $10.86 billion during the current year.”
The rupee is expected to trade between 82.30 and 82.70 on Monday as the market waits for the US Fed on the 14th and the ECB on the 15th. India will release its CPI and IIP figures for April on Monday, which will be the only key data for Monday.
(With input from PTI)