ENA Economy 2024-12-14 15:01:24 <p><span style="font-size:14px"><strong>New Delhi, Dec 14 (KNN)</strong> India's foreign exchange reserves have continued their downward trajectory, reaching a six-month low of USD 654.86 billion in the week ending December 6, according to data released by the Reserve Bank of India (RBI) on Friday. </span></p> <p><span style="font-size:14px">The reserves decreased by USD 3.2 billion from the previous week's total of USD 658.1 billion, marking a persistent trend of gradual reduction since reaching a record high of USD 704,885 billion in September.</span></p> <p><span style="font-size:14px">Despite the ongoing decline, the RBI has maintained a strategic approach to managing currency volatility. </span></p> <p><span style="font-size:14px">Outgoing RBI Governor Shaktikanta Das emphasized the central bank's consistent exchange rate policy, which is fundamentally market-determined. </span></p> <p><span style="font-size:14px">The primary objective remains maintaining orderliness and stability in the foreign exchange market without compromising market efficiency.</span></p> <p><span style="font-size:14px">The central bank's targeted interventions have been pivotal in ensuring the Indian rupee remains one of the least volatile currencies among emerging markets in 2024.</span></p> <p><span style="font-size:14px">Das highlighted that these interventions are designed to smooth out excessive and disruptive market fluctuations, rather than targeting a specific exchange rate level or band.</span></p> <p><span style="font-size:14px">The RBI's approach reflects a measured strategy of deploying foreign exchange reserves judiciously. </span></p> <p><span style="font-size:14px">The goal is to mitigate undue volatility, maintain market confidence, anchor economic expectations, and preserve overall financial stability. </span></p> <p><span style="font-size:14px">This nuanced method has been crucial in navigating the complex dynamics of global currency markets.</span></p> <p><span style="font-size:14px">As the reserves continue to adjust, market observers and economic analysts will closely monitor the RBI's ongoing strategies and the potential implications for India's broader economic landscape.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 40252 https://knnindia.co.in/news/newsdetails/economy/indias-forex-reserves-hit-six-month-low-drop-usd-32-bn-in-one-week 2024-12-14 15:01:24 knnindia.co.in