Foreign exchange reserves drop $10.7 billion to $690.43 billion

Updated: Oct 18th, 2024


Amid growing geopolitical tensions and FII selling, India's foreign exchange (forex) reserves dropped $10.746 billion to $690.43 billion for the week ended October 11, data from the Reserve Bank of India (RBI) showed on Friday. 

The forex had hit an all-time high of $704.885 billion at the end of September. 

In the previous reporting week, the forex had dropped by $3.709 billion to $701.176 billion. 

Meanwhile, gold reserves decreased by $98 million to $65.658 billion during the week, according to the Central Bank. For the week ended October 11, the Special Drawing Rights (SDRs) were down by $86 million to $18.339 billion. The country’s reserve position with the International Monetary Fund (IMF) was down by $20 million to $4.333 billion. 

Looking ahead, India’s forex reserves are projected to grow. The strong forex will boost its economic growth trajectory by strengthening its position internationally, drawing in foreign investments, and promoting domestic trade and industry. 

Strengthened Forex and a strong monetary policy stance are creating confidence among trade and industry and attracting foreign investments amid geopolitical vulnerabilities, according to industry experts. 

Meanwhile, the share of gold in the country's forex has also surged more than 209% since 2018. On Friday, gold prices continued their strong upward momentum, with a sharp rise of ₹500 in MCX, taking the price to ₹77,600, supported by Comex gold surging above $2,710. For 2024, gold has already delivered impressive returns of over 22%, and on a Diwali-to-Diwali basis, returns have reached nearly 30%. This makes gold one of the standout performers for the year. Looking ahead, the price momentum remains strong, with a potential upside target of ₹78,500 in the coming sessions, said experts. 

(This story was taken from a syndicated feed and was only edited for style by Gujarat Samachar Digital staff)

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