Foreign reserves in comfortable range: Report

NEW DELHI: India’s foreign reserves are in a “comfortable range” and another 5-8% fall in reserves will not jeopardise the situation, says a DBS report.

According to the global financial services major, a challenging global environment has compelled RBI to intervene aggressively this year to contain rupee depreciation, resulting in significant drawdown in foreign reserves.

“Despite the recent decline, India’s reserves are in a comfortable range on most metrics. Given lingering external risks, another 5-8% fall in reserves is probable, but is unlikely to jeopardise the adequacy math by much,” the report said.


According to DBS, foreign reserves have declined from a record high of $426 billion in April to $403 billion in early-August as the rupee suffered significant losses since April. The rupee has been among the worst-performing currencies against the dollar compared so far this year and breached the 69-mark against the American unit.