 "Forex reserves decline by over $1 bn at $353 bn")
Foreign exchange reserves fell $1 billion for the week ending July 17 to $353.33 billion, show data from the Reserve Bank of India (RBI). The reserves are currently at a level last seen in the week ending June 5, at $352.71 billion.
Foreign currency assets, a key component, fell $982.14 million to $328.93 billion. Gold reserves remained unchanged at $19.07 billion.
Special Drawing Rights fell by $39.6 million to $4.02 billion, while India’s reserve position with the International Monetary Fund stood at $1.30 billion, a fall of $12.8 million.
Rupee at 5-week low
On Friday, the rupee weakened to a near two-month low. It had opened at 63.97 and during intra-day trade, touched a low of 63.88 before closing at 64.04 a dollar. On a weekly basis, the rupee weakened 0.9 per cent from July 17, the most since the five days ended April 24, to 64.0425 a dollar. The rupee had ended at 64.12 a dollar on May 27.
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“Today, there was huge demand for dollars from corporates and oil companies, which led to weakening of the rupee. The Reserve Bank of India had intervened but in a limited way. The rupee is biased towards weakening next week,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
Currency dealers believe next week, month-end dollar demand by importers will be more due to which the rupee can touch around the 64.25-level.
Foreign currency assets, a key component, fell $982.14 million to $328.93 billion. Gold reserves remained unchanged at $19.07 billion.
Special Drawing Rights fell by $39.6 million to $4.02 billion, while India’s reserve position with the International Monetary Fund stood at $1.30 billion, a fall of $12.8 million.
Rupee at 5-week low
On Friday, the rupee weakened to a near two-month low. It had opened at 63.97 and during intra-day trade, touched a low of 63.88 before closing at 64.04 a dollar. On a weekly basis, the rupee weakened 0.9 per cent from July 17, the most since the five days ended April 24, to 64.0425 a dollar. The rupee had ended at 64.12 a dollar on May 27.
ALSO READ: Forex reserves rise to $352.71 billion
“Today, there was huge demand for dollars from corporates and oil companies, which led to weakening of the rupee. The Reserve Bank of India had intervened but in a limited way. The rupee is biased towards weakening next week,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
Currency dealers believe next week, month-end dollar demand by importers will be more due to which the rupee can touch around the 64.25-level.