India’s forex reserves contract by $3.7 billion from all-time record high: RBI
India’s forex reserves contracted by USD 3.7 billion to USD 701.18 billion as of October 4, data shared by the Reserve Bank of India said on Friday.
The rupee touched a historic low of 83.18 against the dollar briefly during intraday trading, before it closed at 82.74 on Wednesday.
However, the rupee’s close of 82.74 was lower than Tuesday’s close of 82.45 against the dollar.
Earlier in the day, the rupee had opened at 82.37 but later fell to a record low of 83.18 against the dollar.
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Analysts have attributed the rupee’s fall to growing inflation concerns across the globe which has strengthened the dollar, more so due to expectations of hikes in key rates by major central banks the world over.
With the UK facing 40-year high inflation, market watchers are speculating that the Bank of England may hike rates to curb rising prices.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.31 per cent to 112.48. In the previous session on Tuesday, the rupee slipped 10 paise to end at 82.40 against the dollar.
Global oil benchmark Brent crude futures rose 0.82 per cent to USD 90.77 per barrel. On the domestic equity market front, the 30-share BSE Sensex gained 146.59 points or 0.25 per cent to end at 59,107.19, while the broader NSE Nifty advanced 25.30 points or 0.14 per cent to 17,512.25.
The falling rupee has been a concern and Finance Minister Nirmala Sitharaman when asked about the dip, said last week that she saw it more as a case of the dollar strengthening rather than the rupee falling.
(with inputs from Agencies)
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