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6
July 2018
 |
Forex
(The Total Investment & Insurance Solutions)
India's foreign exchange
reserves shrank by another $1.757 billion as Reserve Bank of India continued to
sell dollars from its coffer to prevent the local currency slide sharply.
The reserves was at $406.06 billion after the week to June 22, about $20 billion less than the all time high of $426,08 billion seen on April 13, RBI data showed.
"Since then, the forex reserves dipped almost every week amid dollar outflows on concerns over India's widening current account deficit on higher crude prices," a forex dealer said.
Persistent outflows of dollar amid slow inflows put the local currency under stress which lost about 8% this year turning out to be the worst performing Asian currency and putting pressure on the economy.
The reserves was at $406.06 billion after the week to June 22, about $20 billion less than the all time high of $426,08 billion seen on April 13, RBI data showed.
"Since then, the forex reserves dipped almost every week amid dollar outflows on concerns over India's widening current account deficit on higher crude prices," a forex dealer said.
Persistent outflows of dollar amid slow inflows put the local currency under stress which lost about 8% this year turning out to be the worst performing Asian currency and putting pressure on the economy.
"We also consider
higher oil prices to be a risk to growth, but risks to sovereign credit
dynamics from oil has diminished in recent years following subsidy reforms to
petroleum and diesel fuel," Moody's Investors Service said in a note.
"We do not expect oil
prices to remain elevated for an extended period, but this possibility remains
a downside risk," it said. The Total Investment & Insurance Solutions
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