The Reserve Bank of India was a net seller of $6.1 billion in the foreign exchange market in May, intervening amidst global market volatility and geopolitical tensions. Despite external uncertainties, India's economy remains steady with improving foreign investment inflows and comfortable foreign exchange reserves.
Seoul's foreign exchange market now operates 24 hours on weekdays, enhancing efficiency and access for companies and investors. However, authorities must vigilantly manage risks of overnight volatility and speculative attacks, particularly given recent won-dollar fluctuations and the potential for thinner liquidity to amplify minor news.
The Indian rupee fell 30 paise to close at 94.63 against the US dollar on Monday, influenced by a strong dollar and Middle East tensions. Forex traders noted volatile trading, with inflows offset by dollar strength and peace deal uncertainty.
The Swiss National Bank (SNB) stated it's prepared to intervene in foreign exchange markets to prevent excessive appreciation of the Swiss franc. The central bank maintained its policy rate at 0% while noting a slight increase in inflation to 0.6% due to energy prices linked to the Middle East conflict.
South Korea's finance minister pledged to implement swift measures to curb excessive fluctuations in the foreign exchange market, particularly the recent sharp depreciation of the Korean won against the US dollar. The commitment was made during a meeting with top financial officials.
The Indian rupee strengthened by 34 paise to close at 95.26 against the US dollar on Monday, driven by improving global sentiment over potential US-Iran peace talks and supportive remarks from RBI Governor Sanjay Malhotra.
RBI Governor Sanjay Malhotra stated the central bank will intervene to stabilize the forex market and curb speculation, suggesting the rupee might be undervalued. He affirmed inflation remains the primary policy focus despite global pressures, citing India's strong economic fundamentals.
RBI Governor Sanjay Malhotra stated the central bank is prepared to intervene in the foreign exchange market to manage volatility and curb speculation, suggesting the rupee might be undervalued. He emphasized inflation remains the primary policy focus despite strong economic fundamentals.
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.
