The rupee closed 66 country stronger on Friday when the dollar weakened as the global tariff war took place more. However, the Indian unit registered its worst week in two months, even when Forex reserves of India increased $ 10,872 billion of Dering the week that ended on April 4.
The rupee closed at 86.04 per US dollar compared to the previous closure (Wednesday) or 86.70. The Forex market was closed on Thursday because of Mahavir Jayanti. RUPIA ended the 80 weakest week fish Close last Friday or 85.24.
Kauperhik Das, managing director, Chief-India economist, Malaysia and Asia del Sur, Deutsche Bank, said that, given the insinuated and unprecedented volatility in the global economy, emanating to the Farif Lighthouses, financial stability actrilias a key world.
“As for the rupee, it is a group, although it behaves well at this stage, there could be a renewed pressure on INR, if CNY (Chinese Yuano) begins to depreciate significant in the coming months, to retaliate against tariffs.
“In this sense, it may not make sense to reduce excess repo rates in this cycle, in our opinion.
Radchika Rao, senior economist, DBS Bank, said that after a period of higher performance, the profits of the rupee are expected to be limited by feelings of weak risk, correction in the capital markets, the US dollar and the frying of the facade of the fermentation of the fer Ferference, fear the fears of fears of fears of the fee or demolish in the actions.
In addition, FX gradual depreciation could act by a partial shock absorber for sharply higher reciprocal tariffs.
Meanwhile, India Forex reserves increased $ 10,872 billion in the week of reports that ended on April 4 to be $ 676,268 billion on this date, providing an import coverage of approximately 11 months.
Forex reserves in the report week were mainly driven by the increase in foreign currency assets ($ 9,074 billion) and gold reserves ($ 1,567 billion).
The other two components of the reserves also increased: special drawing rights (at $ 186 million) and a reserve position in the IMF ($ 46 million).
Posted on April 11, 2025