India’s forex reserves fall to 15-month low

India’s foreign exchange reserves dropped to their lowest in 15 months as the central bank probably stepped up its intervention to support the rupee that is testing new lows amid foreign capital outflows.

The reserves fell by $8.06 billion to $580.3 billion as of July 8, data released by the central bank showed Friday.

This is the second straight week of decline and comes as the rupee nears the psychologically-important level of 80 per dollar.

The fall in the RBI’s foreign exchange reserves comes amid a sharp depreciation of the rupee’s exchange rate. The Indian unit hit a record low of 79.96 per dollar on July 15 and is down over 5 percent in FY23.

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