India's Forex Reserves Fall $7.79 Billion to $690.69 Billion as Middle East Conflict Pressures Rupee
Updated
Updated · ThePrint · May 8
India's Forex Reserves Fall $7.79 Billion to $690.69 Billion as Middle East Conflict Pressures Rupee
8 articles · Updated · ThePrint · May 8
$690.693 billion — India’s forex reserves fell to that level in the week ended May 1, extending the previous week’s $4.82 billion decline.
Rupee pressure tied to the Middle East conflict drove the drop, with the RBI selling dollars in the forex market after reserves had hit a record $728.494 billion in late February.
$5.021 billion of the weekly fall came from lower gold reserves, while foreign currency assets — the biggest component — declined $2.797 billion to $551.825 billion.
SDRs edged up $15 million to $18.789 billion and India’s IMF reserve position rose $8 million to $4.863 billion, but those gains barely offset the broader drawdown.
As the rupee hits a new low, is India's 'financial war chest' enough to weather the escalating Middle East conflict?
With reserves plummeting, can public austerity on gold and fuel truly shield India's economy from soaring oil prices?
Is the current currency crisis exposing a fatal flaw in the foundation of India's high-growth economic model?