Rupee Falls Below ₹91 Per Dollar On March 2; RBI Forex Reserves In Focus

The rupee was last quoted at ₹91.40 per U.S. dollar on March 2, compared with ₹90.98 in the previous trading session, as per Reuters data. During the day, it slipped past the ₹91 mark, a level it had not breached in about a month.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The currency had earlier touched a record low of ₹91.98 in late January, just below the ₹92 mark, according to exchange rate data reported by Reuters.

The latest decline followed increased demand for the U.S. dollar as investors shifted toward safe-haven assets after geopolitical tensions escalated in the Middle East, Reuters reported.

Forex Reserves Show Weekly Decline

India’s foreign exchange reserves stood at $723.60 billion as of February 20, down from $725.72 billion in the previous week, according to data released by the Reserve Bank of India. The reserves declined by $2.12 billion on a weekly basis.

The RBI’s weekly statistical supplement showed fluctuations in reserves over recent weeks, reflecting movements in foreign currency assets, gold reserves, Special Drawing Rights (SDRs), and the reserve position in the International Monetary Fund.

According to the latest RBI bulletin, the central bank had a net short dollar position of $62.3 billion as of December-end, compared with $66 billion at the end of November. The data is published with a one-month lag.

Intervention And Market Levels

Market participants cited by Reuters said the RBI had been selling dollars in recent sessions to manage volatility in the currency market. The rupee’s movement below ₹91 has brought attention to the adequacy of India’s reserves in handling external pressures.

With its reserves standing at $723.60 billion as of February 20, official data suggests that the central bank still maintains large foreign exchange reserves. The rupee’s movement on March 2 is seen as an indication of the overall trends of currencies across the world and the domestic market.

The rupee’s move and the data on reserves are closely watched as global developments continue to impact the foreign exchange market.