India's foreign exchange reserves fell by $4.112 billion to $640.279 billion for the week ending December 27. This decline follows an earlier drop of $8.478 billion. The decrease is largely due to revaluation and RBI's forex market interventions. Foreign currency assets dipped by $4.641 billion, while gold reserves increased by $541 million.
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India's forex reserves have fallen for six consecutive weeks, hitting a 10-month low of $625.87 billion due to the RBI's intervention to stabilize the rupee. Despite this, reserves are still sufficient to cover over 11 months of imports, with the RBI actively ensuring market stability.
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The rupee fell 51 paise, closing at 87.2 per US dollar, marking its sharpest decline in three weeks. Regional currency weakness, importer hedging, and dollar demand pressured the currency. The fall is linked to the expiry of NDF contracts and weak sentiment in Asian markets. Analysts expect the rupee to depreciate further with the pace depending on RBI's interventions and foreign outflows.
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India's forex reserves decline for the twelfth time in 13 weeks, falling by $4.112 billion to $640.279 billion. The Reserve Bank of India's intervention in the currency market to stabilize the Rupee has contributed to this consistent drop, though the reserves remain adequate.
Gold prices in New Delhi stayed steady at their record Rs 94,150 per 10 grams amid concerns over potential US reciprocal tariffs on nations with trade deficits, including India. Silver prices decreased to Rs 1,01,500 per kg. Global spot gold saw a marginal increase, while silver prices also rose slightly during Asian market hours.