| Date: |
05-12-2015 |
| Subject: |
Forex reserves down by $750.2 million to $351.615 billion |
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KOLKATA: India's foreign exchange reserves saw $860 million fall in the fortnight ending November 27, ahead of the likely Fed rate hike.
The country's forex reserves is expected to come under more pressure if US Federal Reserve actually makes the short term rates dearer since global investors would withdraw their investment from emerging economies including India and park it in safer markets.
"There are some residual uncertainties about what the Fed will do. But, my sense is as I have said before after an in initial bout of volatility we probably should see Indian markets stabilize and come through," RBI Governor Raghuram Rajan said after making the fifth bi-monthly policy statement Tuesday.
India's reserves are now at $351.616 billion, Reserve Bank of India's latest data showed.
"The rupee will be under pressure as there would be dollar outflows," KPMG's India head Richard Rekhy told ET.
The local currency closed Friday at 66.7785 against the dollar.
Source : economictimes.indiatimes.com
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