Forex Reserve Declines: The country’s foreign exchange reserves have decreased. Due to continuous selling by foreign portfolio investors in the stock market, there has been a decrease in foreign exchange reserves for the second consecutive week. Foreign investors have sold shares worth Rs 51,283 crore since November. According to the data released by RBI, for the week ended December 3, there has been a decrease of $ 1.783 billion in foreign exchange reserves and it has come down to $ 636.905 billion.
Rupee weakens against dollar
The reason for the fall in foreign exchange reserves is not only the selling of foreign portfolio investors in the stock market, but the rupee has also weakened against the world’s major currency, its effect is also being seen. Interest rates are expected to rise due to rising inflation in the US. Due to this also the rupee is depreciating continuously against the dollar. Rupee has weakened 1.3 percent against the dollar in two weeks. This is the second week when the country’s foreign exchange reserves have come down. Within two weeks, the country’s foreign exchange reserves have decreased by $ 4.5 billion.
Foreign investors sell off
According to NSDL data, foreign investors have sold Rs 17,484 crore shares in the stock market so far in the month of December. In November, foreign investors sold shares worth Rs 33,799 crore. That is, in one and a half months, foreign investors have sold shares worth Rs 1,283 crore since November.