Overview

• India’s foreign exchange reserves fell by $1.2 billion in the week to May 30, leaving them $13.4 billion below the September 2024 peak.
• Foreign currency assets accounted for $584.215 billion, and gold holdings reached $84.305 billion as the share of gold in reserves has almost doubled since 2021.
• Reserve Bank of India Governor Sanjay Malhotra said the reserves can fund over 11 months of imports and nearly 96 percent of external debt.
• The rupee held at 85.8050 per U.S. dollar after the RBI’s third consecutive 50 basis-point repo rate cut and a reduced reserve ratio for banks.
• The central bank’s policy easing and robust domestic demand support expectations that the rupee will remain stable as global economic pressures persist.