The central government's fiscal deficit reached 3% of the annual estimates by May-end 2024-25. India's forex reserves surged to USD 653.711 billion, with FIIs selling shares worth Rs 23.09 crore. The RBI confirmed the increase in reserves, reflecting a positive economic outlook.
India Forex Reserve FY 2023-24 | Finance Minister Nirmala Sitharaman is set to present her seventh Budget in July 2024 amid robust economic indicators, including India's substantial foreign exchange reserves of nearly $654 billion. The Modi 3.0 government's first full budget comes amidst high capital inflows and resilient forex management, underscoring economic resilience and strategic fiscal planning
The healthy expansion in infrastructure sectors' growth in May was driven by the production of coal, natural gas, and electricity, amidst rising crude oil prices impacting the rupee and positive equity market sentiment.
India's forex reserves increased by $816 million to $653.7 billion as of June 21, compared to a previous contraction of $2.92 billion to $652.9 billion. Foreign currency assets decreased by $106 million to $574.1 billion. Gold reserves rose by $988 million to $56.95 billion, while SDRs fell by $57 million to $18.04 billion.
Currency traders expect a range of 83.25 to 83.75 to a dollar next week and expect the local currency to close around 83.30/$1 tomorrow after inflows from the index inclusion come in.
Market dynamics shift as USD/JPY nears significant levels, affecting currency movements and trade volumes. Analysts closely monitor key economic indicators for potential policy shifts amid global uncertainties.
The rupee traded against the US dollar, influenced by positive domestic equities and the strength of the American currency. Forex traders noted the impact of the strong US dollar and elevated crude oil prices on the local unit.
The rupee traded against the US dollar in early trade, influenced by the equity market and factors like the dollar's strength and crude oil prices.
Non-resident deposits in India are growing steadily due to various positive factors, including the impact of the pandemic on savings patterns and stable remittances. Factors such as interest rates and exchange rates have made NRI deposits more rewarding.