India’s forex reserves dropped for the third consecutive week, declining by $2.417 billion to $601.453 billion as of August 4, according to the latest RBI data. In the previous reporting week, the overall reserves had dropped by $3.165 billion to $603.87 billion.
For the week ended August 4, the foreign currency assets, a major component of the reserves, decreased by $1.937 billion to $533.40 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-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves were down by $224 million to $44.68 billion, the RBI said. The special drawing rights (SDRs) were down by $171 million to $18.274 billion, the apex bank said.
The country’s reserve position with the IMF was down by $86 million to $5.099 billion in the reporting week, the apex bank data showed.
In the week ended August 11, the rupee moved in a range of 18 paise as FPI bot dollars along with oil companies and ensured the rupee remains at lower levels while RBI protected it from further depreciation by selling dollars.
On Friday, there was some flow which brought the dollar down to the week’s lows. However, risk aversion and weak Asian currencies took the dollar closing to the week’s high. Oil remained well bid thus keeping oil companies on a bid for the dollar.
Anil Kumar Bhansali, head (treasury) and executive director of Finrex Treasury Advisors LLP, said, “If RBI continues to sell next week, we could see the dollar rupee in the range of 82.60 to 82.90 else it may cross 83.00.”
(With Inputs From PTI)
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