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    India's forex reserves fall below $350-billion mark after 15 weeks

    Synopsis

    The reserves fell $1.44 billion in the week to January 8, taking the total fall in last fortnight to $3.22 billion.

    The reserves fell $1.44 billion in the week to January 8, taking the total fall in last fortnight to $3.22 billion.
    KOLKATA: India's foreign exchange reserves have fallen below the $350 billion mark after 15 weeks with overseas investors withdrawing dollar-denominated investment from local market prompting Reserve Bank of India to intervene in the market to soften the fall of the local currency.

    The reserves fell $1.44 billion in the week to January 8, taking the total fall in last fortnight to $3.22 billion. The reserves, which act as a cushion against dollar outflows and provides the critical import cover, now stood at $348.934 billion, RBI said in its weekly data.

    Reserves were at $349.979 billion on September 25, 2015, after which it was always remained above the $350-billion level.

    The RBI sold dollars from the reserves to support rupee and prevent it from depreciating too sharply.

    The rupee on Friday closed at 67.77 a dollar, compared to last Friday's 66.69 as dollar outflows putting pressure on the local currency.

    Pressure on rupee intensified ever since the People's Bank of China devalued yuan to make its exports attractive.

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    14 Comments on this Story

    akansha roy1775 days ago
    volatile
    Dulla C Sekhar1775 days ago
    Volatility on global markets is the reason for the fall and also some FIIs are withdrawing from the markets to offset further losses due to poor performance of companies in Q3 and also the govt is struggling to meet budget targets despite raising quite a lot of taxes during the year. Growth downgraded by the govt also now and the inflation is also rearing its head. Does the govt have any solutions on hand and will they work with the states to cut food inflation. Seeing an arrogant govt working on selfish political agenda.
    Madan Mohan1776 days ago
    With the oil prices falling we must have seen good gains - as it is the highest bleeder of foreign exchange .But manufacturing failing to pick up ,the whole economy is effected once the manufacturing picks up ,service Industry picks up and there will be all round growth
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