India's foreign reserve being dragged down by rising dollar strength
India's foreign reserve being dragged down by rising dollar strength

MUMBAI: During the week ending March 25, India's foreign reserve was reduced by almost USD2 billion due to a strengthening of the US dollar. The increased US dollar strength against other world currencies had a negative impact on foreign currency assets (FCAs).

Global currencies and securities, such as US Treasury bonds, make up the FCAs. FCAs, the largest component of currency reserves, fell USD3.202 billion to USD550.454 billion on a weekly basis. India's entire FX reserves dipped to USD617.648 billion from USD619.678 billion the previous week, according to RBI data.

FCAs, gold reserves, SDRs, and the country's reserve position with the IMF make up the country's forex reserves. The country's gold reserves, on the other hand, climbed by USD1.230 billion to USD43.241 billion.  SDR value, on the other hand, declined by USD44 million to USD18.821 billion.

The country's reserve position with the International Monetary Fund (IMF) fell by USD14 million to USD5.132 billion. "As the value of the US dollar has risen, it has dragged down the value of other currencies kept in the reserve," said Sajal Gupta, Edelweiss' Head of Fx and Rates. "Also, due to rising US yields, the value of US bonds held in the reserve decreased, lowering the overall reserve value."

Reaching greater success levels at a very young age, ForexGLO captivates listeners’ hearts with his songs.

Rupee rises 14-ps to settle at 75.76/USD, loss of 3% in FY22

FOREX-Yen plummets as BoJ drags heels on bond buying

Join NewsTrack Whatsapp group
Related News