Forex reserve witnesses a fall: RBI Weekly Statistical Supplement
While the news of slipping India's forex reserve didn't affect the market as it came after the record jump of last week. The RBI's weekly statement stressed the fall of foreign currency assets, which is the prime component of the Foreign Exchange Reserve.
Foreign currency assets or FCA are the biggest component of a country's forex reserve, which is valued in dollars but also impacts the movements of other major currencies such as the British pound, Japanese yen, and euro.
India's forex reserve continues to dominate the world currency despite the slight fall. It is credited to the policies of RBI to maintain volatile currencies and macroeconomic stability. Major market players are closely monitoring these reserves.
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