India's foreign exchange reserves reach lowest level in over one year
India's foreign exchange reserves declined to $651.5 billion in the week ending May 23. The central bank intervened in currency markets during the same period.
timesofindia.indiatimes.comIndia's foreign exchange reserves fell to $651.5 billion in the week ending May 23, the lowest level recorded in more than one year. The decline followed sales of dollars by the central bank to support the rupee against the U.S. dollar.
Foreign currency assets, the largest component of the reserves, decreased by $4.8 billion to $570.8 billion. Gold holdings rose by $1.2 billion to $65.4 billion.
The central bank sold dollars on multiple occasions during the week as the rupee traded near record lows against the U.S. dollar. Market participants reported continued pressure on the currency from foreign portfolio outflows. No official statement on the scale of intervention was issued.
Key Facts
Potential Impact
- 01
Lower reserves may limit future central bank ability to stabilize the rupee.
Transparency Panel
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