Moreover, investors remain confident in India’s growth story despite geopolitical uncertainties. According to Reserve Bank of India (RBI) data released on Friday, the country’s foreign exchange reserves surpassed $700 billion for the first time, reaching $704.89 billion in the week ending September 27.

The foreign exchange market rose by $12.59 billion this week, the most since mid-July 2023.

With this, India joins only three other countries – China, Japan, and Switzerland – that have exceeded $700 billion in reserves.

According to the central bank, foreign currency assets (FCAs) rose by $10.4 billion to $616 billion, and gold reserves rose by $2 billion to $65.7 billion.

According to the RBI’s Weekly Statistical Supplement, Special Drawing Rights (SDRs) increased by $8 million to total $18.547 billion. The country’s reserve position in the International Monetary Fund (IMF) decreased by $71 million this week to $4.3 billion.

This year’s foreign inflows into the country totalled $30 billion, a promising figure. Looking ahead, India’s foreign reserves are expected to increase further, bringing a wave of optimism. India’s robust forex will not only accelerate its economic growth but also enhance its international position, attract more foreign investment, and promote domestic trade and industry.

Despite global economic headwinds and growing geopolitical risks, India’s foreign reserves are at all-time highs, a testament to the country’s economic resilience. The rupee, now the most stable currency among major economies, provides a sense of reassurance and confidence. The country is now seeing high domestic flows, and FPI flows into debt markets have also increased. Positive FPI flows have contributed to the country’s record forex levels, strengthening the external industry and enhancing the economy overall. The large foreign exchange reserves will give the RBI more flexibility in monetary policy and currency management.

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–IANS

It is perhaps no coincidence that the RBI Governor’s statement follows the latest note by global investment firm Jefferies, which said the rupee is now the most stable currency among major economies.

According to Das, the central bank’s policy is to prevent excessive rupee volatility.

“Stable rupee fosters confidence among market participants, investors and the wider economy,” Das said in reports.

The RBI has actively engaged in the foreign exchange market to manage rupee fluctuations, primarily employing public sector banks (PSUs) as intermediaries to sell US dollars.

These PSUs play a crucial role in stabilising the rupee by executing the RBI’s foreign exchange operations, thereby contributing to the currency’s stability.

The Central Bank occasionally intervenes in the market through liquidity management, including by selling dollars, to prevent a steep depreciation in the rupee.

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Market analysts said the dollar weakness has been a significant factor in keeping the rupee relatively stable, with only minor declines against the dollar.

The focus is now on the upcoming US Fed Reserve policy meeting on September 16. Jateen Trivedi, VP Research Analyst—Commodity and Currency, LKP Securities, said a 0.25 percent rate cut and a dovish stance are widely anticipated.

The certainty of a Fed interest rate cut has increased after jobless claims rose to 230,000 compared to the expected 228,000, giving the Fed more room to ease rates. This potential rate cut is expected to influence the rupee’s stability, as it could lead to a shift in global capital flows, affecting the rupee’s exchange rate against the dollar.

On Tuesday, the rupee appreciated by 2, praising to 83.84 against the US dollar in early trade.

According to market experts, the USD/INR pair is expected to remain volatile, with support between 83.80 and 83.70 and resistance at 84.05-84.15. This means that the rupee’s exchange rate against the dollar is likely to fluctuate within these ranges, reflecting the ongoing market dynamics and the influence of external factors such as the upcoming US Fed Reserve policy meeting.

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–IANS

According to the latest report from global investment firm Jefferies, the RBI’s foreign reserve is expected to increase by $53 billion to $700 billion in the current fiscal year (FY25E). It added that the rupee is now the most stable currency among major economies.

However, given the surging forex reserves in FY25, the $700 billion mark does not look very far.

India’s forex reserves jumped $5.2 billion to a fresh all-time high of $689.24 billion (in the week ended September 6). According to the weekly RBI data, foreign currency assets (FCAs) grew by $5.10 billion to $604.1 billion.

The country is now seeing high domestic flows. Foreign Portfolio Investment (FPI) flows into debt markets have also increased. Last week, FPIs purchased equities in the Indian stock market worth Rs 16,800 crore, bringing the total buying to Rs 27,856 crore (till September 13).

According to NSDL data, FPIs bought equities in the cash market every day last week. As of 2024, FPIs had invested a total of Rs 70,737 crore.

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According to market watchers, positive FPI flows have helped the country achieve record forex levels. This will create external sector resilience and boost the economy across sectors.

The substantial foreign exchange reserves will provide the RBI with greater flexibility in monetary policy and currency management. India’s reserve position with the International Monetary Fund (IMF) has increased by $9 million to $4.631 billion.

According to market experts, India’s strong currency will accelerate economic growth by boosting its international standing, attracting foreign investment, and promoting local trade and industry.

Meanwhile, with inflation in the second quarter of FY25 expected to remain below the RBI’s target of 4.4% due to the cooling of food prices, the central bank may explore reducing rates at the next Monetary Policy Committee (MPC) meetings.

According to Jefferies, global interest rates have risen sharply, and a cycle reversal appears imminent in the coming quarters, allowing the RBI to lower benchmark interest rates in India.

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–IANS

According to the weekly data by the Reserve Bank of India (RBI), foreign currency assets (FCAs) grew by $5.10 billion to $604.1 billion (week ended September 6).

The data showed a $129 million increase in Gold reserves to $61.988 billion, compared to $61.859 billion at the end of August. Gold is the second largest contributor to India’s forex reserve.

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According to RBI data, the Special Drawing Rights (SDRs) increased by $4 million to $18.472 billion, compared to their previous level of $18.468 billion at the end of August.

The country’s reserve position with the International Monetary Fund (IMF) went up $9 million to $4.631 billion.

The Central Bank occasionally intervenes in the market through liquidity management, including by selling dollars, to prevent a steep depreciation in the rupee.

The country’s considerable foreign exchange reserves will give the RBI more flexibility in future monetary policy and currency management.

According to industry experts, sensible policy actions and a diligent monetary policy attitude have helped the forex reach a fresh all-time high, notwithstanding rising geopolitical uncertainty.

He stated that, along with the RBI’s robust policies and continuing government handholding, India’s strong currency will help economic growth by enhancing its international standing, attracting foreign investment, and stimulating domestic commerce and industry going forward.

The country is also the world’s fourth-largest holder of foreign exchange reserves and one of the world’s major beneficiaries of foreign direct investment. India has become a popular worldwide investment destination, resulting in a rebound effect.

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–IANS

“We remain confident of meeting our external financing requirements comfortably,” he said.

Das also said that India’s current account deficit (CAD), which is a key indicator of a country’s economic health, moderated to 0.7 percent of GDP in 2023-24 from 2.0 percent of GDP in 2022-23. This reduction is primarily due to a lower trade deficit and robust services and remittance receipts, indicating a healthier balance of payments for India.

In Q1:2024-25, the merchandise trade deficit widened as imports grew faster than exports, he added.

The RBI head further stated that buoyancy in services exports and strong remittance receipts are expected to keep CAD within a sustainable level in Q1:2024-25.

“We expect CAD to remain eminently manageable during the current financial year,” he remarked.

On the external financing side, foreign portfolio investors became net buyers in the domestic market from June 2024, with net inflows of $9.7 billion during June-August (until August 6) after witnessing outflows of $4.2 billion in April and May, the central bank chief said.

Foreign direct investment (FDI) flows picked up in 2024-25, painting an optimistic picture of India’s economic growth. Gross FDI rose by more than 20 percent during April-May 2024, while net FDI flows doubled during this period compared to the corresponding period of the previous year. Figures compiled by the RBI show that FDI flows rose sharply to $15.2 billion in April-May 2024-25 from $12.3 billion during the same period a year ago.

Net FDI flows increased twofold to $ 7.1 billion in April-May 2024-25 from $ 3.4 billion a year ago due to lower repatriation. External commercial borrowings moderated during April-June 2024-25, while non-resident deposits recorded higher net inflows during April-May compared to the previous year, Das added.

–IANS

The reserves surged by $4 billion during the week after increasing by $14.9 billion in the preceding two weeks.

The increase in Forex reserves, a reflection of the robust fundamentals of the economy, provides the RBI with a stronger position to stabilize the rupee during periods of volatility, instilling optimism and reassurance in the market.

The substantial Forex reserves held by the RBI play a crucial role in stabilising the rupee. This is achieved through the central bank’s interventions in the spot and forward currency markets, where it releases more dollars to prevent the rupee from experiencing a sharp decline.

Conversely, a declining Forex kitty leaves the RBI less space to intervene in the market to prop up the rupee.

RBI Governor Shaktikanta Das recently underscored the resilience of India’s external sector, expressing the central bank’s confidence in comfortably meeting the country’s external financing requirements, thereby instilling a sense of confidence and security in the economy.

According to RBI data released on June 24 this year, India’s Current Account Deficit (CAD) declined to $23.2 billion (0.7 percent of GDP) during 2023-24 from $67.0 billion (2.0 percent of GDP) during the previous year due to a lower merchandise trade deficit, which reflects a robust external balance position.

The RBI data also showed that India’s CAD recorded a surplus of $5.7 billion (0.6 percent of GDP) in the January-March quarter (Q4) of 2023-24, as against a deficit of $8.7 billion (1.0 percent of GDP) in the preceding October-December quarter of 2023-24.

–IANS

India's foreign exchange reserves rose by $4.344 billion during the week ended April 9.

According to the Reserve Bank of India's (RBI) weekly statistical supplement, the reserves increased to $581.213 billion from $576.869 billion reported for the week ended April 2.

India's forex reserves comprise foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs), and the country's reserve position with the International Monetary Fund (IMF).

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by $3.017 billion to $539.455 billion.

Similarly, the value of the country's gold reserves gained by $1.297 billion to $35.320 billion.

The SDR value inched up by $6 million at $1.492 billion.

On the same note, the country's reserve position with the IMF inched higher by $24 million to $4.946 billion.

ians
 

The BSE Sensex plunged over 500 points on Wednesday morning tracking a decline in the Asian markets.

Heavy selling was witnessed in metal, finance, banking and IT stocks.

Around 10.15 a.m., Sensex was trading at 49,536.26, lower by 515.18 points or 1.03 per cent from its previous close of 50,051.44 points.

It opened at 49,786.47 and has touched an intraday high of 49,854.58 and a low of 49,529.23 points.

The Nifty50 on the National Stock Exchange was at 14,657.95, lower by 156.80 points or 1.06 per cent from its previous close.

The major losers on the Sensex were Tata Steel, ONGC and ICICI Bank, while the top gainers were Asian Paints, Sun Pharmaceutical Industries and Power Grid.

Indias forex reserves have now become the fourth largest in the world at $580.3 billion surpassing Russia.

Emerging markets have been building reserves to guard against volatility due to Covid aftershocks.

Reserves for India and Russia have plateaued rising for months. India pulled ahead as Russian holdings declined at a faster rate.

India's foreign currency holdings fell by $4.3 billion to $580.3 billion as of March 5, the Reserve Bank of India said on Friday, edging out Russia's $580.1 billion pile.

The world's largest forex reserves league table is headed by China, followed by Japan and Switzerland.

India's reserves are now worth 18 months of imports have been boosted by massive inflows by FIIs into the stock market and burgeoning FDI.

According to a recent report by Acuite Ratings, the Indian rupee has strengthened in 2021 so far on healthy portfolio inflows, and sharp downward adjustment in inflation.

"We expect India to post record BoP surplus of $105 billion in FY21, followed by a healthy surplus of $55 billion in FY22.

"While FX intervention from the central bank will continue in FY22, the pace is likely to ease with moderation in inflation. We expect gradual appreciation in the currency to play out with USDINR at 73.0 (with downside risk) in Mar-20 to 71.0 by Mar-21," the report said.

ians

To increase the safety of people working or living in enclosed environments, Milagrow, a domestic service robots brand, has launched two advanced industry-grade duct cleaning robots – Hydra and Viper – in the Indian market at a starting priced of Rs. 1,199,000.

According to the company, both the robots help with cleaning accumulated dirt, dust smut, etc in rectangular or round air ducts with a diameter between 100-350mm. This will be useful for facility managers across corporates, factories, hotels, restaurants, airports, healthcare companies and more.

"The latest addition to Milagrow's product portfolio, Hydra is the world's most versatile duct cleaning robot that cleans large and medium-sized rectangular or round ducts between 250-1000mm in size. It can also climb up to 30 degrees," the company said in a statement.

It comes with an extendable telescopic cleaning arm, 3-way camera to leave no dead corners. A rotation rate of 297 rpm, 360-degree maneuverability on its own axis, variable speed control provides it with huge versatility.

The full set of Milagrow Hydra weighing includes a cleaning robot, smart control box, 20 m flexible cable, an 1800W, 60L vacuum cleaner, four types of brush heads for different size ducts.

Meanwhile, Milagrow Viper cleans round and rectangular ducts between 100-350mm. It comes with three PA 66 nylon brushes that have long durability and spins both sides and cleans efficiently without damaging the duct.

Its footswitch makes for easy movement control whereas the flexible shaft bracket ensures easy storage. Viper's Omni-directional wheel eases maneuvering around.

The full set of Milagrow Viper includes the robot, control box, 10 m shaft/cable, sliding car, footswitch, and three types of brushes.

ians