forex reserves: RBI MPC: India’s forex reserves rise to record high of $651.5 bn as of May 31


India’s forex reserves rose to a record high of $651.5 billion as of May 31, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday along with key decisions on the monetary policy.As of May 24, the RBI had reported a dip of $2 billion to $646.67 billion to come off the previous all-time high of $648.7 billion.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

(More to come)

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