India's Forex Reserves Hit Six-Month Low, Drop USD 3.2 Bn In One Week
Date
12/14/2024 4:31:57 AM
(MENAFN- KNN India)
New Delhi, Dec 14 (KNN)
India's foreign exchange reserves have continued their downward trajectory, reaching a six-month low of USD 654.86 billion in the week ending December 6, according to data released by the Reserve bank of India (RBI) on Friday.
The reserves decreased by USD 3.2 billion from the previous week's total of USD 658.1 billion, marking a persistent trend of gradual reduction since reaching a record high of USD 704,885 billion in September.
Despite the ongoing decline, the RBI has maintained a strategic approach to managing currency volatility.
Outgoing RBI Governor Shaktikanta Das emphasized the central bank's consistent exchange rate policy, which is fundamentally market-determined.
The primary objective remains maintaining orderliness and stability in the foreign exchange market without compromising market efficiency.
The central bank's targeted interventions have been pivotal in ensuring the Indian rupee remains one of the least volatile currencies among emerging markets in 2024.
Das highlighted that these interventions are designed to smooth out excessive and disruptive market fluctuations, rather than targeting a specific exchange rate level or band.
The RBI's approach reflects a measured strategy of deploying foreign exchange reserves judiciously.
The goal is to mitigate undue volatility, maintain market confidence, anchor economic expectations, and preserve overall financial stability.
This nuanced method has been crucial in navigating the complex dynamics of global currency markets.
As the reserves continue to adjust, market observers and economic analysts will closely monitor the RBI's ongoing strategies and the potential implications for India's broader economic landscape.
(KNN Bureau)
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