Rupee exchange rates fluctuate as India's forex reserves surge

India’s foreign exchange reserves increased by $2.579 billion in the week of October 27, 2023, despite a notable foreign investor pullout of Rs 17,875 crore.** This was largely attributed to the maturity and reversal of a $5 billion dollar-rupee swap agreement between the Reserve Bank of India (RBI) and various banks.

The Indian rupee depreciated by 5 paise against the US dollar during the week, closing Friday at an exchange rate of 83.29.** However, the RBI was able to maintain stability in foreign currency assets through regular spot interventions and fluctuations in asset values.

This report was created by OXShare

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. In relation to the Indian rupee, the Pakistani rupee concluded Friday with an exchange rate of 3.41. The fluctuations in exchange rates between these two neighboring nations are closely watched by traders and economists due to their interconnected economies.

The benchmark Sensex rose by 0.44 percent or 283 points to close at 64,363.78 on Friday.** The performance of this index often reflects investor sentiment towards the overall health of the Indian economy and can impact forex reserves and currency exchange rates.

Overall, the report shows that India’s foreign exchange reserves are in a healthy position, despite the recent foreign investor pullout. The RBI is able to manage its reserves effectively and maintain stability in the currency market. The performance of the Sensex is also a positive sign for the Indian economy, suggesting that investors are confident in the long-term outlook.