fell 0.1 per cent to 70.19 per dollar on Friday, widening its year-to-date loss to 9 per cent, the worst in Asia. The currency hit an all-time low of 70.3950 on Aug. 16.
While the RBI’s headline foreign-currency reserves fell $1.8 billion for the week of Aug. 10, the drop was probably largely due to valuation effects, according to Bloomberg Intelligence economist Abhishek Gupta. India held $400.9 billion of reserves as of Aug. 10, down from a record $426 billion mid-April, with the latest weekly data due today.
“We are in a very uncertain world, and I think the RBI
would like to keep reserves in their pocket, not trying to spend too fast,” said Gopikrishnan MS, head of foreign exchange, rates and credit for South Asia at Standard Chartered Plc in Mumbai. “If it’s going to be a global phenomena, outside India’s control, then the intervention will be low.”
The Reserve Bank of India
has said it does not target any particular level of the exchange rate and steps in only to curb undue volatility in the currency. Data on intervention is published with a two-month lag.