India’s foreign-exchange reserves plunged $5.14 billion in Oct

India’s foreign-exchange reserves plunged $5.14 billion in Oct


India’s foreign-exchange reserves plunged $5.14 billion in the week ended Oct. 12, the biggest drop in seven years, hinting the central bank intervened to stem the Indian Rupee‘s losses from getting out of hand after it held interest rates at an Oct. 5 meeting.

“This reserve selling was mostly due to USD/INR buying pressure after the FX market reacted negatively to the RBI decision,” said Maximillian Lin, an emerging-markets Asia strategist at NatWest in Singapore. The intervention helped limit further weakness in the rupee, a move helped by a decline in oil prices and a softer dollar, he said.


India’s foreign-exchange reserves plunged $5.14 billion in Oct < India News



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