India’s Forex Reserves Record Weekly Drop

• India’s foreign exchange reserves fell by $17.8 billion in the week of November 15, reaching a four-month low.

• The dollar strengthened following the U.S. election verdict, leading to revaluation losses.

• The Reserve Bank of India (RBI) reported a total fall of nearly $30 billion in the last six weeks.

• The rupee fell to a record low of 84.41 against the dollar.

• Foreign investors net sold local stocks and bonds worth more than $4 billion in November.

• Despite the decline, the central bank’s intervention in the forex market limited a knee-jerk reaction in the local currency market.

• Economist Aditi Gupta expects forex reserves to rise to about $675-685 billion by March.