India’s foreign exchange reserves fell for a second straight week as reports gave different readings of the rupee’s early Monday move, complicating comparisons with Friday’s close.
The Reserve Bank of India (RBI) said reserves declined by $5.011 billion to $721.016 billion in the week ended Oct. 16. Foreign currency assets fell by $5.758 billion to $591.847 billion, while gold reserves rose by $706 million to $105.8 billion. Reserves had dropped by $8.578 billion to $726.027 billion in the prior week ended Oct. 9, according to the RBI’s Oct. 16 release.
Press Trust of India (PTI), in a dispatch carried by The Economic Times, reported that the rupee opened at 94.92 per U.S. dollar and later reached 94.98. PTI compared that level with Friday’s close of 94.93 and described a five-paise decline. Moneycontrol reported an opening rate of 94.93 and a Friday close of 94.94. The one-paisa difference in Friday’s reported rupee close was also covered in EconoTimes’ earlier reporting.
PTI’s account cited higher oil prices and Middle East tensions as pressures on the currency. Its early-trade snapshot put Brent crude futures at $114.48 a barrel, up 1.92%, and the dollar index at 101.49, down 0.15%.
Anuj Choudhary, research analyst at Mirae Asset Sharekhan, said weakness in the U.S. dollar and Treasury yields helped limit the rupee’s losses. He said global risk aversion, elevated oil prices and selling pressure by foreign institutional investors (FIIs) could weigh on the currency. Choudhary added that any fresh RBI intervention could offer support.
Reuters reported that flows connected to the Jio Platforms IPO had supported the rupee in the previous week. The IPO allotment was due Monday, with shares scheduled to list Wednesday, Oct. 28. Reuters also identified the U.S. Federal Reserve’s policy decision later in the week as a focus for markets.
