MPC external member Ram Singh signaled that a repo rate hike is not on the cards for now, tying the decision to whether inflation triggers second-round effects. He expects the West Asia conflict to ease, which could moderate price pressures, while saying forex reserves remain adequate and open market operations will support liquidity. Growth, he adds, stays resilient despite supply risks.
India’s foreign exchange reserves rose by $2.3 billion to $703.30 billion for the week ending April 17, reversing some of the drawdown seen earlier. The depletion followed pressure on the rupee after the Middle East conflict, when RBI intervention helped stabilize currency swings. Reserves were last at an all-time high in February 2026.
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The Reserve Bank of India has issued a directive to curb banks’ foreign exchange reserves, signaling a renewed push to protect the rupee’s value. While framed as a safeguard measure, the move also hints that the central bank could consider further actions to influence capital flows and stabilize market dynamics.
India’s foreign exchange reserves fell to $646.67 billion, down about $2 billion from a previous record high, ending a three-week growth run. The dip coincides with sharp rupee volatility, with the currency oscillating between roughly 83.03 and 83.36 per dollar during the reported period, highlighting pressure even as reserves remain near peaks.
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