India's forex reserves fall to $398.8 billion

Posted by Daily Shipping Times on 06-11-2017        Tweet

MUMBAI: India's foreign exchange reserves fell for the second straight week to $398.761 billion, Reserve Bank of India data showed. The reserves, which act as a cushion against dollar outflows, fell $1.560 billion in the last two weeks amid concerns over tightening of global monetary easing.

Bank of England has just raised its base rate by 0.25 percentage points to 0.5% while the US Federal Reserve is expected to raise it in December. The week ending October 27 saw reserves shrinking by $1.160 billion. While RBI does not provide reasons behind fall in reserves, forex traders said the fall indicates that RBI must have sold more dollars than what it had purchased over the last fortnight.