India’s foreign exchange reserves stood at $691.5 billion as of May 30, down $1.2 billion from the previous week and coming off near-eight-month highs, announced Reserve Bank of India governor Sanjay Malhotra said while announcing MPC decisions.
The forex reserves had touched an all-time high of $704.885 billion in end-September 2024.
India’s forex kitty
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
Content Source: economictimes.indiatimes.com