India’s foreign exchange reserves saw a significant increase, despite a notable withdrawal by foreign investors, ending the week of October 27 with a total of $586,111 million, an increase of $2,579 million according to the Bank of the Reserve Bank of India (RBI). This considerable increase was largely attributed to the expiry and revocation of a Rs 5 billion swap agreement between the RBI and several banks that had been in place for a year and a half, resulting in a smooth transfer of the bank accounts to RBI account.
The Indian rupee depreciated by 5 paise against the US dollar and closed at an exchange rate of 83.29 on Friday. Despite this dynamic and the withdrawal of Rs 17,875 crore by foreign investors, the stability of foreign currency assets was maintained due to regular spot interventions by the RBI and fluctuations in asset values.
Meanwhile, on Friday, Pakistan’s foreign exchange market operated from 9 am to 5 pm setting fluctuating exchange rates for various currencies including USD, SAR, GBP, AED and EUR. These rates not only differently influenced interbank but also retail transactions and set the tone for the next day’s opening rates.
Relative to the Indian rupee, the Pakistani rupee ended on Friday with an exchange rate of 3.41. Traders and economists closely monitor fluctuations in exchange rates between these two neighboring nations due to their interconnected economies.
In Indian stock market news, the benchmark Sensex rose 0.44 per cent or 283 points to close at 64,363.78 on Friday. The performance of this index often reflects investor sentiment towards the overall health of the Indian economy and can affect foreign exchange reserves and exchange rates.
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