Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said that India’s forex reserves are at 11-month high of merchandise exports.
India’s forex reserves increased by $2.7 billion to $698.19 billion for the week ending July 25, data by the Reserve Bank of India showed on August 1.
Previously, India’s forex reserves had dipped by $3.06 billion to $696.67 billion for the week ending July 18.
Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.
The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.
