MUMBAI: Forex reserves fell for the sixth consecutive week to a 10-month low of $625.9 billion as of Jan 10, declining by $8.7 billion within the week and $23.5 billion in 5 weeks. The decline – down $79 billion from an all-time excessive of $704.9 billion in late Sept – displays RBI’s greenback gross sales and a fall within the worth of non-dollar holdings because the buck gained globally.
The rupee, going through strain from a robust greenback and exiting overseas investor settled at 86.61 on Friday, its steepest weekly drop in 18 months. Dealers speculated that RBI may enter into foreign exchange swaps (whereby it borrows {dollars}), to spice up reserves and rupee liquidity.
