India’s forex reserves fall to $583.53 bln as of Oct 20 – cenbank

MUMBAI, Oct 27 (Reuters) – India’s foreign exchange reserves (INFXR=ECI) resumed a losing streak, falling to $583.53 billion as of October 20, according to Reserve Bank of India (RBI) data. (The previous week was $585.9 billion). It aired on Friday.

Foreign exchange reserves have fallen sharply in recent weeks, dropping by $14.2 billion in the five weeks to October 6, the lowest level in five months. However, it increased by $1.16 billion for the week ending October 13.

The RBI will intervene in both the spot and futures markets to prevent the rupee from spiraling out of control.

RBI Governor Shaktikanta Das reiterated in a recent session with International Monetary Fund Asia-Pacific Director Krishna Srinivasan that “we do not have a specific exchange rate in mind when it comes to foreign exchange market intervention.”

“Our approach and focus is to prevent excessive fluctuations in exchange rates,” he added.

Das also called on the United States and other countries and organizations to reconsider their use of “watch list-like labeling.”

Fluctuations in foreign currency assets are caused not only by appreciation or depreciation of foreign assets held in reserves but also by RBI intervention.

Foreign exchange reserves also include India’s reserve tranche position with the IMF.

The rupee traded in the range of 83.0375-83.2850 rupees during the week ending October 20, but settled at 83.2450 rupees on Friday.

Foreign exchange reserves (US$ million)

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October 20th October 13th

2023 2023

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Foreign currency assets 515,202 519,351

Gold 45,425 43,575

SDR 17,925 17,995

Reserve tranche position 4,980 4,975

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Total 583,532 585,895

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Source text: (https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx)

(This story has been reedited to correct table formatting)

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