After jumping to reocrd-high, India’s forex reserves dipped by $3.47 billion to $667.39 billion for the week ending on July 26, data shared by the Reserve Bank of India (RBI) showed on Friday.
Previously, country’s forex reserves jumped by $4.00 billion to hit an all-time high of $670.86 billion as of July 19.
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
(more to come)
