Branch2 Intelligence
India's Forex Kitty Drops $5.65 Billion To $666.93 Billion
Key takeaway
India's forex reserves fell $5.65bn to $666.93bn, the largest weekly drop in months, driven by RBI intervention to defend the rupee amid portfolio outflows.
- Step 11st-order: RBI sells $5.65bn from reserves to stem rupee depreciation, reducing forex reserves to $666.93bn.
- Step 22nd-order: Domestic liquidity tightens as RBI absorbs rupees; short-term interest rates rise 10-15 bps, raising working capital costs for Indian SMEs.
Source: IN:NDTV Profit
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