Home / Economy / What RBI Governor said on rupee, forex market at HTLS 2022

At Hindustan Times Leadership Summit 2022, Reserve Bank of India (RBI) Governor Shaktikanta Das spoke about India's foreign exchange reserves, saying, "Even at this points of time, our reserves are very comfortable."

Das said the first objective of the central bank's market intervention in a forex market is to ensure an orderly movement of exchange rate. Second is to anchor market expectations.

"If the RBI doesn't intervene, market takes it as rupee will just depreciate and RBI is indifferent and agnostic to it. That will fuel further depreciation," the RBI Governor said.

According to the RBI's data released on Friday, the country's forex reserves dropped by $1.087 billion to stand at $529.994 billion for the week ended 4 November on a sharp decline in the gold reserves.

In the previous reporting week, the reserves had swelled by $6.561 billion to touch $531.081 billion, making it the biggest weekly jump in a year.

In October last year, India's forex kitty had touched an all-time high of $645 billion. The reserves have been declining as the RBI deploys the kitty to defend the rupee amid pressures caused by global challenges.

Meanwhile, the rupee appreciated by 62 paise to close at 80.78 against the US dollar yesterday, as moderating US inflation data coupled with a fall in the dollar index boosted investor sentiments.

Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, told PTI: "The Indian rupee appreciated on weak US Dollar and positive domestic markets. Sustained FII inflows also supported Rupee."

However, a spike in prices of crude oil capped sharp gains.

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