India’s forex reserves dip $7.8B to $690.69B as RBI steps in
India’s forex reserves dip $7.8B to $690.69B as RBI steps in
Forex reserves fall as assets and gold rerun weaker; RBI intervention cited as a key factor in stabilizing the rupee amid global currency pressures.
India’s weekly forex reserves declined by $7.794 billion to $690.693 billion for the week ending May 1, marking a renewed dip after a prior decrease. The fall was led by a drop in foreign currency assets and a drawdown in gold reserves, signaling ongoing external sector pressures and the bank’s active market operations.
The decline comes as the central bank’s intervention in the forex market to support the rupee remains a key driver behind this trend, helping to cushion volatility in the currency.
The rupee has faced significant pressure against the U.S. dollar, with the surge in crude oil prices and persistent foreign fund outflows contributing to the slide. Despite robust economic growth, the currency’s weakness persists as the RBI continues to curb volatility rather than target a specific exchange rate.
This week’s data follows a prior decrease, underscoring ongoing volatility in the external sector and the RBI’s ongoing market support to shield the rupee.
