New Telegraph

India Forex Reserves Surge As Rupee Exchange Rates Fluctuate

India’s foreign exchange reserves saw a significant increase, despite a notable foreign investor pullout, ending the week of October 27 with a total of $586.111 billion, a surge of $2.579 billion according to the Reserve Bank of India (RBI).

This considerable rise was largely attributed to the maturity and reversal of a $5 billion dollar-rupee swap agreement between RBI and various banks that had been in place for one-and-a-half years, resulting in a seamless transfer from banks’ accounts to RBI’s account.

The Indian rupee depreciated by 5 paise against the US dollar, closing Friday at an exchange rate of 83.29.

Despite these dynamics and the foreign investor pullout of Rs 17,875 crore, stability in foreign currency assets was maintained through RBI’s regular spot interventions and fluctuations in asset values.

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Meanwhile, on Friday, Pakistan’s forex market operated from 9 am to 5 pm setting fluctuating exchange rates for several currencies including USD, SAR, GBP, AED, and EUR.

These rates not only influenced interbank transactions but also retail ones differently and set the tone for the next day’s opening rates.

The Pakistani rupee closed Friday at a 3.41 exchange rate versus the Indian rupee. Because the economies of these two nearby countries are so intertwined, merchants and economists keep a close eye on changes in exchange rates.

On the Indian stock market, the benchmark Sensex closed at 64,363.78 on Friday, up 283 points, or 0.44 per cent.

This index’s performance frequently indicates how investors feel about the state of the Indian economy as a whole, and it has an effect on foreign exchange reserves and exchange rates.

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