India’s forex reserves jumped by $4.672 billion to $590.783 for the week ended November 3, according to the latest RBI data. Foreign currency assets, a crucial part of the reserves, rose by $4.392 billion, as per the central bank.
The overall value of the gold held was up by $200 million at $46.123 billion. The country’s special drawing rights increased by $64 million to $17.975 billion, while its reserve position with the International Monetary Fund rose $16 million to $4.789 billion, the apex bank said.
Rupee Remains In Trading Range
Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, said, “The rupee remained in a trading range of 83.13 to 83.30 for the entire week unless RBI decided that enough was enough and allowed a break in the range of 83.30, today, as the rupee made a lifetime low of 83.4875 and a closing low of 83.35.”
He added that there was sufficient demand for the dollar from importers apart from the cash dollar shortage which has brought premiums of 1 year down from 1.82 per cent to 1.55 per cent though they closed at 1.58 per cent.
“For the coming week, the US dollar will be bought on all dips against the rupee as the range goes from 83.15 to 83.50 in a holiday shortened week. Brent crude oil down at $80.81 is an advantage for the rupee but the shortage of dollar has taken away the fruits of the advantage,” Bhansali said.
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