Short-sellers are targeting Japan's yen, risking a repeat of the 1997 Asian financial crisis. Japan's weak fundamentals, high debt, and declining competitiveness make its currency vulnerable, despite large forex reserves. A potential inflation-devaluation spiral could profit speculators.
India's foreign exchange reserves have fallen by $38 billion as the RBI intervenes to manage rupee volatility, driven by high crude oil prices and FII outflows. Analysts warn the slide may continue if global conditions don't stabilize.
India's forex reserves have dropped by nearly $38 billion since the Iran conflict began, the steepest decline among regional economies, yet remain robust enough to shield the rupee from further depreciation, according to economists.
India's foreign exchange reserves experienced a significant drop of $7.794 billion, reaching $690.693 billion in the week ending May 1. This decline, primarily driven by a fall in foreign currency assets and gold reserves, follows a previous decrease. The central bank's intervention in the forex market to support the rupee is a key factor behind this trend.
India's foreign exchange reserves increased by $2.3 billion to reach $703 billion in the week ended April 17, driven by foreign currency assets and dollar asset revaluation. The Indian rupee weakened 14 paise to close at 94.25 against the dollar, with traders indicating the Reserve Bank of India likely sold dollars to prevent further depreciation amid dollar demand from foreign investors and private oil companies.
India's foreign exchange reserves surged by $2.362 billion to $703.308 billion in the week ending April 17, following a previous gain of $3.825 billion. This increase, driven by rising foreign currency assets and gold reserves, marks a rebound after a decline caused by Middle East geopolitical tensions.
