InvestorQ : Why did India’s forex reserves again fall sharply in the latest week?
prachi Patwardhan made post

Why did India’s forex reserves again fall sharply in the latest week?

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sara Kunju answered.
3 weeks ago
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For the week ended 02nd September, Indian forex reserves fell by another $8 billion to the $553 billion mark. The sharp fall in the reserves were largely because RBI was defending the rupee at around the levels of 80/$. This is the lowest level of forex reserves in the last 23 months. For the week, the gold reserves stood at $38.30 billion, falling by $1.34 billion. It is hardly surprising that brokerage houses like Jefferies have warned that India should closely monitor its forex position. The CAD is expected to hit 4-5% of GDP and it is not good news.

In 2022, INR has fallen 7% against dollar, with dollar at 20-year high. Futures are hinting at rupee beyond 80/$.

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