RBI 2022, In March, the rupee fell below 76.9050 against the dollar last hit on April 22, 2020 amid the COVID-19 pandemic, marking its first all-time low in a year.
RBI 2022, The Reserve Bank of India sold $20.1 billion in the foreign exchange market in March to support the rupee against the US dollar, according to a monthly publication.
The central bank said its net outstanding dollar forward purchases had risen from $49.11 billion at the end of February to $65.79 billion at the end of March. In February, RBI sold its net worth of $771 million in the spot market.
In March, Rupee was between 75.76 and 76.97. In March, the rupee hit its first all-time low in a year, breaking the 76.9050 per dollar last reached on April 22, 2020 amid the COVID-19 pandemic.
The unit now hit several all-time lows in the past two weeks, thanks to a broad dollar strengthening and serious hedging, and hit 77.7975 a day earlier.
Economist Adam Hoyes said: “Given that the RBI has sufficient foreign exchange reserves, we expect the rupee to weaken more stably against the US dollar over the next several years than most other emerging market currencies. do,” he said Capital Economics. said in the memo.
India’s foreign exchange reserves drop to $595.95 billion as of May 6, compared with $597.73 billion a week earlier, the latest RBI data last week showed.
Reserves had reached a record high of $642.45 billion in early September 2021.
The central bank also said on its bulletin board that inflationary pressures are becoming more common among commodity groups. It was evaluated that the Monetary Policy Committee’s prompt response to interest rate hikes showed a strong commitment to price stability.
The MPC raised its benchmark interest rate by 40 basis points at its unscheduled meeting on May 4th and most economists expect further increases at its next meeting.
“The growing global risks associated with slowing growth, rising inflation, supply disruptions from geopolitical spillovers and financial market volatility from simultaneous monetary tightening pose short-term challenges,” the central bank wrote.
Says India’s economic recovery remains robust, although risks from global events weaken momentum and rising global commodity prices are adding to India’s trade and current account deficits.
“Achieving higher growth in a sustainable way requires encouraging private investment through greater government capital expenditure, which tends to push back private investment,” the RBI said.
Also read: Wholesale Inflation In India 2022, April jumps to 15.08%, the highest in 17 years.